Poland’s Financial Sector Hit by Wave of Fraudulent Activities as New Law Takes Effect
Introduction
A new law aimed at preventing money laundering and terrorist financing has come into force in Poland, but experts warn that it may not be enough to stop the growing problem of fraudulent activities in the financial sector.
The Act on Financial Information System (FIS)
The FIS system was implemented on February 10, 2023, and is designed to help authorities quickly identify account holders and safe deposit box holders. According to sources close to the investigation, the FIS system will be operated using an ICT system and will require financial institutions, including:
- Banks
- Investment firms
- Payment institutions
- Undertakings that provide safe deposit boxes
to submit information about their clients. This registered information includes: + Account numbers + Types of accounts + Dates of opening and closing + Contract details + Categories of data regarding the holders or representatives
The law also requires institutions to retain this information for a period of five years from the closure of the account or termination of the contract.
Concerns Over Lack of Transparency
Despite the efforts, many experts believe that more needs to be done to stop fraudulent activities in Poland’s financial sector. “We need to see stricter regulations and greater cooperation between authorities to combat this problem,” said Maria Kowalczyk, an expert on financial fraud at Warsaw University.
The FIS system is part of a broader effort by the European Union to combat money laundering and terrorist financing. The law also amends the Act on Counteracting Money Laundering and Financing of Terrorism, which will enable the sharing of information between authorized bodies.
Experts’ Concerns
“We welcome any efforts to strengthen anti-money laundering measures in Poland,” said Kowalczyk. “However, we must also address the lack of transparency in the financial sector and the failure to implement stricter regulations.”
The problem is not just with money laundering, but also with tax evasion and other forms of fraud.
Penalties for Fraudulent Activities
As the new law takes effect, authorities are warning that anyone found guilty of fraudulent activities could face severe penalties, including:
- Fines
- Imprisonment
It remains to be seen whether this new law will be enough to combat the growing problem of fraudulent activities in Poland’s financial sector.