New AML regulations to guard against the funding of weapons of mass destruction

Is your business prepared for the upcoming changes in AML regulations? The Polish Anti-Money Laundering and Countering the Financing of Terrorism (AML) Act is set to be amended to include specific restrictive measures aimed at countering the proliferation of weapons of mass destruction (WMD).

This translates to new obligations for obligated institutions, the necessity to update procedures, and potentially severe penalties for non-compliance. Below, we outline the origins of this change, detail the components of the new rules, and how they may affect your business.

Why does the fight against WMD proliferation find its way into the AML Act?

The proliferation of weapons of mass destruction (WMD) refers to the spread of dangerous weapons – such as nuclear, biological, or chemical arms – and the financial support enabling such activities. Combating its financing has been recognised as equally important as preventing money laundering and terrorist financing.

FATF Recommendation 7 requires the application of restrictive measures in line with UN Security Council resolutions adopted under Chapter VII of the UN Charter, which aim to prevent the proliferation of WMD and its financing.

Currently, these resolutions primarily target Iran (UNSCR 2231 of 2015) and North Korea (UNSCR 1718 of 2006 and subsequent resolutions). The European Union implemented them through Council Regulations 267/2012 and 2017/1509, which are directly applicable in Poland.

However, the Polish AML Act has not yet fully reflected all FATF requirements. As a result, the Ministry of Finance has prepared a draft amendment to the AML Act (dated 31 March 2025) to ensure full alignment with international standards and to strengthen the domestic system of financial sanctions targeting WMD proliferation financing.

New provisions in the Polish AML Act – what will change?

The amendment to the Polish AML and Terrorist Financing Act of 1 March 2018 (Journal of Laws 2023, item 1124) introduces key changes relevant to the FinTech sector, particularly in relation to restrictive measures covered in Chapter 10 of the Act.

Until now, these measures have focused primarily on combating terrorist financing. Following the amendment, they will also cover the financing of the proliferation of weapons of mass destruction (WMD). As a result, the sanctions list will be expanded to include entities linked to WMD programmes.

Obliged institutions – including FinTech companies – will be required to verify whether they are providing services or conducting transactions for such entities. If such links are identified, the institution will be required to apply restrictive measures such as freezing funds or refusing to process transactions.

To facilitate enforcement, the amendment introduces provisions allowing for the direct application of EU Regulations 267/2012 and 2017/1509. It also provides for administrative sanctions in the event of non-compliance, such as failing to freeze funds or engaging with a listed entity.

The structure of supervision will also change. The General Inspector of Financial Information (GIIF) will receive additional powers to oversee the implementation of proliferation-related sanctions. Individuals appointed to key positions within the GIIF and the Financial Security Committee will be required to demonstrate knowledge of countering WMD proliferation.

For FinTechs, this will likely mean increased scrutiny from regulators, including the expected issuance of GIIF guidance on how to fulfil the new obligations.

What does this mean in practice for FinTech companies?

For FinTech players – from fintech payment start-ups to e-money institutions to cryptocurrency exchanges – the new regulations mean that the existing scope of compliance must be expanded.

These companies are obligated institutions under the AML Act and must therefore comply with all imposed obligations, with additional requirements now included.

In practice, this means that companies’ AML/CFT procedures will need to be updated to include elements related to countering proliferation financing. If you have focused mainly on AML/CFT thus far, it is time to add a third pillar – counter proliferation financing.

Time for action!

The proposed changes to the AML Act are not merely another bureaucratic requirement; they are, more importantly, part of a global security strategy. FinTechs, as innovators in the financial world, must recognise that their products and services can be misused, and responsible businesses must take steps to prevent this.

The amendment concerning the financing of the proliferation of weapons of mass destruction establishes a new standard with which the financial sector must contend.

The good news is that with the right approach and expert support, these changes can be implemented without excessive difficulty, and meeting the new requirements will bolster your company’s credibility. It is unwise to wait until the last minute; take action now to comply with the forthcoming regulations.

If you need assistance navigating the new regulations or would like to consult about your company’s readiness for the upcoming changes, feel free to contact us!