GIFI’s notice on the ongoing analysis of transactions by obliged institutions
The General Inspector of Financial Information (GIFI) issued a notice on actions that obliged institutions, including national payment institutions (KIPs) and small payment institutions (MIPs), are obliged to take in the case of execution of transactions that are inconsistent with the knowledge of the institution about the clients and the type of activities carried out by them. It is worth reviewing the remarks of the GIIF when preparing/updating internal AML and CFT procedures.
The General Inspector for Financial Information pays particular attention to situations, in which the account of a client of an obliged institution, who already has a transaction history of at least several months, is credited with funds exceeding several times the total value of all inflows to the client’s account, e.g. for the previous 12 months. The obliged institution must then establish the source of the assets and apply financial security measures concerning the client.
GIFI highlights that the role of obliged institutions is to actively analyze transactions on an ongoing basis. Entities keeping accounts for clients in the framework of business relations (e.g. banks, cooperative savings and credit unions, payment institutions) are obliged, in particular, to:
- accurately define a client profile, which will then be used for ongoing monitoring of the business relationship. Obliged institutions are burdened with the necessity to obtain when establishing the relationship and during its course, detailed information on the client’s planned transactions, its counterparties, objectives, and characteristics of its activity. In determining the profile of a client, consideration should be given in particular to:
- the value of the transferred funds,
- frequency of transactions,
- type of transaction,
- subject matter of the transaction,
- direction/country of the transaction,
- identify transactions that are inconsistent with the institution’s knowledge of the client and the nature and extent of its business, and are inconsistent with the money laundering and terrorist financing risks associated with the client
- ensure that transactions conducted in the course of a business relationship are consistent with the institution’s knowledge of the client, the type and extent of its business and the money laundering and terrorist financing risks associated with that client.
The above obligations apply to all clients of the obliged institutions, regardless of their type (natural persons, legal persons, organizational units without legal personality) and the assigned risk level (e.g. low, medium, high).
The content of the notice is available on the website: