KNF may demand the submission of an audit book (inspection log) during control
National Payment Institution audit in Poland
Any National Payment Institution (KIP) supervised by the Polish Financial Supervision Authority (the PFSA, or KNF – for Komisja Nadzoru Finansowego in Polish) may expect at some point an audit to be carried out by KNF checking the compliance with regulations and good market practices that can be reasonably expected from KIP (Pursuant to article 103 Payment Services Act).
Remote audit of National Payment Institution
During Covid-19 pandemic it can be conducted remotely, i.e. without physical presence of the KNF auditors on the supervised entity’s premises. However, it does not free such entity from full compliance with legal obligations binding not only on a supervised entity but also on entrepreneur in general.
Book of audit
In our Polish banking law team dealt with a demand from KNF, for instance, to show the book of audit (inspection log) which must be kept pursuant to article 57 of Entrepreneurs’ Law (i.e. Journal of Laws of 2021, item 162). It can be kept in electronic form instead of a hard copy but nonetheless it must comprise of the following elements:
1) the designation of the inspection authority;
2) the designation of the inspection authorization;
3) the by-subject scope of the conducted inspection;
4) the inspection commencement and inspection completion dates.
There is no liability provided for not having an audit book (inspection log). However, it can be reasonably expected that KNF will order KIP to achieve compliance with this requirement. Otherwise the inspection can drag on for as long as this is obligation is not fulfilled.