Financial Crime World

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Poland Tightens Screws on Anti-Money Laundering Regulations

September 6, 2023

The Polish government has strengthened its efforts to combat financial crime by introducing strict anti-money laundering (AML) regulations under the AML Act. Obligated institutions in Poland must comply with a series of obligations aimed at identifying and reporting suspicious transactions.

Who is Subject to AML Obligations?

The regulations apply to entities explicitly specified in the law, commonly referred to as obligated institutions. This includes:

  • Banks
  • Credit and financial institutions
  • Investment firms
  • Investment funds

However, the Polish legislator has also included other entities that may not be traditionally associated with anti-money laundering and counter-terrorist financing obligations.

The most crucial internal document in the field of anti-money laundering and counter-terrorist financing is the risk assessment related to money laundering and terrorist financing. This document determines all further actions taken by the obligated institution in this area. The risk assessment must be:

  • Prepared or updated at least every two years
  • Adapted to the actual business profile of the obligated institution

The essence of regulations related to anti-money laundering and counter-terrorist financing is the necessity for obligated institutions to exercise due diligence when establishing and maintaining business relationships with customers. Each obligated institution must:

  • Identify its customers
  • Verify their identities before establishing a business relationship

Consequences of Non-Compliance

Failure to comply with AML obligations can result in:

  • Administrative penalties, including:
    • Publication of information about the obligated institution on the public government website
    • Orders to cease specific actions
    • Revocation of concessions or permits
    • Fines
  • Criminal sanctions may also be imposed on individuals acting on behalf of or for the benefit of the obligated institution

Conclusion

The AML Act imposes numerous obligations on obligated institutions in Poland, which can sometimes be challenging to fulfill. Therefore, entrepreneurs in Poland should:

  • Determine whether their company is an obligated institution
  • Adjust their business activities accordingly to comply with the requirements related to anti-money laundering and counter-terrorist financing