Poland

1. Does Poland have legislation making it a criminal offence to engage in money laundering and/or terrorist financing?

Yes. Both issues are criminal offences under the Polish criminal code.

2. To whom does the legislation apply?

Offences under the Criminal Code and AML regulations may be committed by all individuals who commit the money laundering offence. Administrative penalties under AML regulations may only be imposed on “obliged institutions”.

AML regulations apply to the majority of financial institutions, payment services companies, investment banks, auditors, accountants, real estate brokers, insurance brokers, insurance companies, lawyers, tax advisors, AIFMs, gambling companies.

3. What does the legislation prohibit?

The legislation prohibits money laundering and terrorism financing (as defined below)

4. How is money laundering defined? Does underlying criminal activity have to be proven?

Money laundering offences may be committed by dealing with property derived from a prohibited act in any of a broad range of ways (or assisting another person in doing so) or undertakes other actions that may frustrate or substantially obstruct the determination of the criminal origin or location, or the detection, seizure or forfeiture of such property. Employees or other individuals acting in the name of or for the benefit of a bank, financial or credit institution, or another entity legally obliged to register transactions and people making transactions commit offences by:

• receiving, transferring or converting financial instruments, securities, foreign exchange, transfers or converts them “against the provisions of legal tenders”;
• receiving such property in other circumstances raising a reasonable suspicion that they have been associated with criminal activity; or
• provides other services aimed at concealing the criminal origin of such property or securing it against seizure.

Individuals may commit offences by carrying out preparatory acts in respect of any of the conduct referred to above.

It is necessary for the underlying criminal activity to be proven.

5. What level of intent or knowledge is required to establish a violation?

It is necessary to show that individuals acted intentionally in order to establish the principal money laundering offence referred to above.

In the case of offences applying to employees or other individuals acting on behalf of banks or other financial institutions, these offences may be committed where the employee or individual in question has “reasonable suspicion”.

The terrorist financing offence can also be committed unintentionally.

6. What are the potential penalties for infringing the legislation?

Imprisonment for up to ten years with respect to money loundering offence depending on circumstances. The court may also impose the forfeiture of items that have been derived directly or indirectly from the crime, as well as the benefits that have been derived from the crime or their equivalent in value, even if they are not the property of the perpetrator. Forfeiture is not imposed in full or in part if the item, benefit or its equivalent-in-value is to be returned to the harmed party or another entitled entity.

Imprisonment for up to 12 years with respect to terrorist financing offence depending on circumstances.

7. Does the legislation have extra-territorial reach?

Yes.

8. Are there additional anti-money laundering or counter terrorist financing regulations or obligations, such as registration or reporting obligations, for businesses or individuals that operate in particular sectors or undertake particular activities?

Yes – the Act on counteracting money laundering and terrorist financing dated 1 March 2018 as amended (“AML Act). The AML act imposes an obligation to report to the AML regulator suspicious transactions and transactions of the value exceeding a threshold of EUR 15,000 on some types of the obliged institutions.

The AML regulations impose on legal entities and some entities not having legal personality an obligation to disclose its beneficial owner in the Central Register of Beneficial Owners.

9. What are the potential penalties for failing to comply with these obligations?

Administrative and/or financial penalties may be imposed.

Administrative penalties may include:

• the publication of information on the obliged institution and the scope of the breach of the provisions of the Act committed by that institution in Biuletyn Informacji Publicznej [the Public Information Bulletin] on the website of the office providing services to the minister responsible for public finance;
• an order that the obliged institution stop undertaking certain activities;
• the withdrawal of a licence or permit or deletion from a regulated activity register;
• a prohibition on performing obligations in a managerial position for the person responsible for the breach of the provisions of the Act committed by the obliged institution, for a period not longer than one year; and/or
• a financial penalty.

Financial penalties may be up to twice the amount of the benefit achieved or the loss avoided by the obliged institution as a result of the breach or, where it is impossible to determine the amount of that benefit or loss, up to the equivalent of EUR 1,000,000. In some cases a financial penalty may be imposed on the obliged institutions:

In the case of an individual, financial penalties may be up to PLN 20,868,500.

In the case of a legal person or an organisational unit without legal personality, financial penalties may be up to the equivalent of EUR 5,000,000 or up to 10% of the turnover reported in the last approved financial statements for a financial year or in the last consolidated financial statements for a financial year-in the case of institutions covered by the consolidated financial statements of a capital group.

In the case of breaching AML obligation in the given obliged institution, a pecuniary penalty in the amount of up to PLN 1,000,000, depending on circumstances, may be imposed on a person responsible in the given entity for the given noncompliance with AML regulations.

10. Who are the relevant enforcement authorities in Poland and what are their contact details?

The General Inspector of Financial Information is the AML general supervisory authority. The National Bank of Poland, the Minister of Finance and the Polish Financial Supervision Authority also fulfil supervisory responsibilities.