Important changes to the Polish AML Act!

In accordance with the draft amendment to the Act on Counteracting Money Laundering and Terrorist Financing (AML), prepared in response to the recommendations of the Moneyval report, a clarification of Article 27(1c) of the AML Act has been announced. The changes are of key importance for institutions subject to identification and risk assessment obligations.

The assessment of money laundering and terrorist financing risks relating to the activities of institutions subject to these obligations should also cover new services and products.

This assessment should be carried out by the institution subject to these obligations prior to:

1. making new services, products or delivery channels available, or
2. undertaking other activities within the scope of the professional activities of obliged institutions
3. using new or emerging technologies in the course of their professional activities.

The purpose of these changes is to reduce the risk of money laundering and terrorist financing and to enable direct reference to criterion 15.1 (FATF R. 15).

Furthermore, obliged institutions will be required to document the measures taken, which will translate into greater transparency of risk management.

National Risk Assessment as a mandatory internal analysis tool

The amendment also clarifies Article 27(2) of the AML Act, imposing an obligation to take into account the National Risk Assessment and European Commission reports as part of internal risk assessment.

The introduction of this change is intended to increase the effectiveness of systemic risk management.

New powers in the event of the inability to apply financial security measures

Another important change provided for in the draft concerns Article 41(1) of the AML Act, which contains a list of measures that may be taken if it is not possible to apply financial security measures. These changes are crucial for the effective use of the possibilities provided for in Article 14(4) of the current Directive 2015/849.

Previously, under the current wording of Article 41(1), only institutions maintaining bank accounts had the authority to refuse to execute a transaction when AML risks were identified. Under the new proposal, this right will also be granted to other financial institutions, regardless of whether they maintain bank accounts.

This means:

• the possibility of freezing funds and suspending transactions within business relationships,
• waiving the requirement to automatically terminate a business relationship if security measures cannot be implemented.

Why are these AML changes so important?

The amendment to the AML Act introduces significant changes in the scope of documentation and risk assessment obligations, as well as extends the powers of obligated institutions in situations where financial security measures cannot be applied. This is a clear step towards tightening the AML system and aligning national regulations with European standards.

Do you need support in complying with the new regulations? Contact our experts, we will be happy to help you!