Financial Crime World

Poland Introduces Stringent Anti-Terrorist Financing Regulations to Combat Money Laundering

The Polish government has taken a significant step towards strengthening its financial security system by implementing the Act of 1 March 2018, on preventing money laundering and terrorist financing. This legislation aims to prevent the illegal use of the country’s financial system for money laundering and terrorist financing purposes.

Key Measures to Prevent Money Laundering and Terrorist Financing

Under the new regulations, obligated institutions such as:

  • Banks
  • Payment institutions
  • Investment firms

are required to implement specific measures to prevent money laundering and terrorist financing. These measures include:

  • Customer Identification and Verification: Institutions must verify the identity of their customers and maintain accurate records.
  • Beneficial Owner Identification: Institutions must identify the beneficial owner(s) of a customer or account holder.
  • Business Relationship Evaluation: Institutions must evaluate the business relationship with each customer to assess the level of risk involved.
  • Ongoing Monitoring of Transactions: Institutions must monitor transactions on an ongoing basis to detect suspicious activity.

Supreme Financial Information Authority

The General Inspector of Financial Information (GIFI) has been designated as the supreme financial information authority responsible for overseeing the implementation of these regulations. The GIFI is empowered to:

  • Analyze Suspicious Transactions: Conduct thorough investigations into suspected money laundering and terrorist financing activities.
  • Conduct Investigations: Investigate institutions that fail to comply with the regulations.
  • Impose Sanctions: Impose fines, license revocation, or prohibition on performing managerial duties on institutions that violate the regulations.

Financial Security Committee

The Financial Security Committee operates under the GIFI and provides an opinion-giving and advisory function. The committee is responsible for:

  • National Risk Assessments: Reviewing national risk assessments to identify areas of high risk.
  • Recommendations for Special Restrictive Measures: Issuing recommendations for applying special restrictive measures against individuals or entities that pose a threat to the financial system.
  • Legal Solutions Analysis: Analyzing legal solutions related to preventing money laundering and terrorist financing.

Sanctions for Non-Compliance

The Polish AML Act introduces a range of sanctions for institutions that violate the regulations, including:

  • Fines: Financial penalties for non-compliance with the regulations.
  • License Revocation: The revocation of an institution’s license to operate in Poland.
  • Prohibition on Performing Managerial Duties: Prohibiting individuals from performing managerial duties in the financial sector.

Expert Reaction

Financial experts have welcomed the new regulations, believing they will enhance the security of Poland’s financial system and reduce the risk of money laundering and terrorist financing. The Act also provides a framework for cooperation between different authorities and institutions, ensuring that all parties work together to combat these criminal activities.

Conclusion

As the Polish government continues to implement its anti-terrorist financing regulations, experts are optimistic about the potential benefits of this legislation. By strengthening its financial security system, Poland is demonstrating its commitment to preventing money laundering and terrorist financing and protecting its citizens from these serious crimes.