Financial Crime World

Fraudulent Activities in Poland’s Financial Sector Raise Concerns

======================================================

The financial sector in Poland has been plagued by fraudulent activities, with recent amendments to the country’s Anti-Money Laundering and Countering the Financing of Terrorism Law (AML Act) aimed at increasing transparency and combating illegal activities.

Background

President Andrzej Duda signed the long-awaited amendment into law on April 8, implementing significant changes resulting from EU regulations. The primary goal is to enhance the detection of funds derived from criminal activity or used for terrorist financing purposes.

Key Changes

The new amendments will significantly impact financial institutions, obliging them to take extra measures to prevent fraud and money laundering. Some of the key changes include:

  • Extended Obligations: Extending the catalogue of obliged institutions, including entrepreneurs providing services related to tax laws and those dealing in works of art and antiques.
  • Definition Changes: Changing definitions of beneficial owner (UBO) and politically exposed person (PEP), requiring financial institutions to adjust their internal AML processes and collect more information on clients.
  • New Prerequisites for Financial Security Measures:
    • Verification of changes in client data related to UBOs or PEPs
    • Expanding the scope of data collected regarding a client’s identity verification
    • Increasing administrative workload within know-your-customer (KYC) teams
  • Enhanced KYC Measures: Introducing new prerequisites for applying financial security measures and expanding the scope of data collected regarding a client’s identity verification.
  • PEP List: Providing additional guidelines on verifying beneficial owners, including documentation of reasons why certain information cannot be verified.

Impact and Expert Analysis

Experts at TMF Group, a global provider of administrative services, say these changes aim to make the often ineffective anti-money-laundering system more coherent and effective. “These changes are an attempt to make the heterogeneous legal systems of European Union member states more coherent,” said experts.

TMF Group can help financial institutions navigate compliance challenges in Poland and globally. With offices in 85 jurisdictions, the company provides administrative services, including:

  • Legal setup and oversight
  • Regulatory filings
  • Accounting
  • Tax
  • Payroll support

How TMF Group Can Help

To learn how TMF Group can assist your organization, make an enquiry or contact local experts in Poland.