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Anti-Money Laundering Regulations in Poland: Administrative Penalties and Fines

Overview

Poland has implemented strict anti-money laundering (AML) regulations to prevent financial crimes. The AML Act outlines severe administrative penalties and fines for non-compliance, which are imposed by the General Inspector for Financial Information, President of the National Bank of Poland, or Polish Financial Supervision Authority.

Administrative Penalties

Administrative penalties are imposed based on several factors, including:

  • Gravity and duration of the breach: The severity and length of time the non-compliance occurred will influence the penalty.
  • Financial capacity of the obligated institution: The financial stability of the institution will be taken into account when determining the penalty.
  • Scale of profits gained by the entity: If the institution profited from the non-compliance, this will be considered when imposing a penalty.
  • Losses incurred by third parties: Any losses suffered by individuals or organizations affected by the non-compliance will also be factored in.
  • Degree of cooperation with competent authorities: The level of cooperation shown by the institution during the investigation will influence the penalty.
  • History of previous breaches: If the institution has a history of non-compliance, this will be considered when determining the penalty.

Types of Administrative Penalties

Administrative penalties can take various forms:

  • Publication of information on the obliged institution and scope of violation in the Public Information Bulletin: The details of the non-compliance will be publicly disclosed.
  • Order to stop certain actions by the obligated institution: The institution may be required to cease specific activities.
  • Withdrawal of concession or permit or striking off the register of regulated activities: In severe cases, the institution’s license to operate may be revoked.
  • Prohibition from performing managerial duties for up to one year: Individuals in management positions may face a ban on performing their duties for a specified period.
  • Pecuniary penalty (up to twice the amount of benefit gained or loss avoided, with a maximum of EUR 1 million): A fine will be imposed, which can reach up to twice the amount of profit made or loss avoided.

Higher Fines for Certain Entities

Banks, credit institutions, cooperative savings and credit unions, domestic payment institutions, small payment institutions, investment firms, and other entities referred to in 2.1.1-5, 7-11, 24 and 25 of the AML Act may face higher fines:

  • Fine up to EUR 5 million (or up to 10% of turnover shown in last approved financial statement) for legal persons: Fines can reach up to EUR 5 million or up to 10% of the institution’s annual turnover.
  • Fine up to PLN 20,868,500 for natural persons: Individuals may face fines up to PLN 20,868,500.

Referral from Imposing Penalty

In certain circumstances, authorities may refrain from imposing an administrative penalty:

  • Gravity of breach is negligible and the obligated institution has ceased the breach: If the non-compliance is minor and the institution has rectified the issue, a fine may not be imposed.
  • Another authorized public administration body has already imposed a penalty on the obligated institution for the same behavior: If another authority has already penalized the institution for the same offense, further action may not be taken.

Additional Penalties

Additional penalties may apply:

  • For beneficial owners who fail to provide necessary information and documents: Fine up to PLN 50,000: Beneficial owners who fail to provide required documentation may face a fine of up to PLN 50,000.
  • For entities conducting activities without obtaining an appropriate entry in the register or conducting virtual currency activities without first obtaining an entry in the relevant register: Pecuniary penalty of up to PLN 100,000: Entities operating without proper registration or licenses may face a fine of up to PLN 100,000.

Penalties for Management Functions

Individuals in management positions who fail to comply with AML regulations may face penalties:

  • Members of senior management, person responsible for implementing AML obligations, and employee responsible for supervising compliance may be fined up to PLN 1 million: Individuals in these roles may face fines up to PLN 1 million if their institution violates Art. 147 and 148 of the AML Act.

By understanding the administrative penalties and fines outlined in the AML Act, institutions can take proactive measures to ensure compliance and avoid costly repercussions.