Financial Crime World

Polish Banking Regulator Outlines Customer Due Diligence Measures and Depositor Protection

Warsaw, Poland - The Polish Financial Supervision Authority (PFSA) has outlined its customer due diligence measures and depositor protection regime, aimed at ensuring the stability of the country’s banking sector.

Customer Due Diligence Measures

The PFSA requires banks to implement robust customer due diligence measures, including:

  • Identifying and verifying the identity of customers
  • Taking reasonable measures to verify the beneficial owner
  • Assessing the purpose and nature of business relationships
  • Conducting ongoing monitoring
  • Being aware of any positions or interpretations issued by the General Inspector of Financial Information regarding anti-money laundering and counter-terrorism financing duties

Depositor Protection Regime

The PFSA has outlined its depositor protection regime, which is administered by the Bank Guarantee Fund (BGF). The scheme provides coverage for deposits up to the equivalent of EUR100,000, according to the average exchange rate of the National Bank of Poland. The guarantee covers a range of funds, including:

  • Those in bank accounts
  • Other receivables arising from banking activities
  • Selected receivables from bank securities

The BGF is responsible for ensuring that banks participate in the scheme by contributing to it based on various factors, such as:

  • Management profile
  • Capital
  • Liquidity
  • Quality of assets

The guarantee does not extend to certain entities, including:

  • The State Treasury
  • The National Bank of Poland
  • Certain financial institutions

Bank Secrecy Requirements

The PFSA has outlined its bank secrecy requirements, which apply to banks, their employees, and persons or entities through whom they perform banking activities. Banks are required to maintain secrecy regarding all information concerning banking activities, unless disclosure is necessary for the proper performance of contracts or other activities connected to concluding or performing those contracts.

Banks may disclose information subject to bank secrecy to certain entities, including:

  • Other banks
  • Credit institutions
  • Financial institutions
  • Providers of open-banking services
  • The PFSA
  • Courts
  • Prosecutors
  • The Financial Ombudsman

Breaching bank secrecy is subject to both civil and criminal liability.

Prudential Regime

The PFSA has also outlined its prudential regime, which includes:

  • Capital requirements: Banks must maintain a minimum initial capital of the equivalent of EUR5 million, which may be adjusted based on the scope and scale of their activities.
  • Liquidity requirements: Banks must maintain adequate liquidity to meet their obligations.
  • Related risk control requirements: Banks must implement robust risk management systems to identify and mitigate potential risks.

These measures are aimed at ensuring the stability and security of Poland’s banking sector, and demonstrate the PFSA’s commitment to implementing robust regulatory standards to protect depositors and prevent financial crime.