Updated: 26.03.2025
Money laundering is regulated by the Law of March 1, 2018 on Anti-Money Laundering and the Financing of Terrorism (AML Law). In addition, the Criminal Code provides for certain sanctions for money laundering.
At the EU level, Directive 2015/849/EU, in turn, defines the process of money laundering as the following acts committed intentionally:
a) converting or transferring property, with the knowledge that it is derived from criminal activity or from participation in such activity, for the purpose of concealing or disguising the illegal origin of that property or assisting any person who participates in such activity, in order to enable that person to avoid the legal consequences of such action;
b) concealing or disguising the true nature of the property, its source, location, disposition, movement, rights pertaining to the property or ownership of the property, with the knowledge that the property is derived from criminal activity or from participation in such activity;
c) acquisition, possession or use of property, with knowledge at the time of receipt that such property is derived from criminal activity or from participation in such activity;
d) participation or collaboration in the commission, attempted commission, and aiding, abetting, facilitating, and advising in the commission of any of the acts referred to in (a), (b), and (c).
Money laundering also occurs when the activities in which the property to be laundered was obtained took place in the territory of another member state or a third country.
What is money laundering?
In the Polish Criminal Code, money laundering is defined slightly differently than in the EU Directive 2015/849/EU as undertaking activities aimed at giving the characteristics of legality to assets of criminal origin, which consists of three main stages: placement, masking and integration.
In light of Art. 299 of the Criminal Code, money laundering is the intentional receipt, possession, use, transfer or export abroad, concealment of means of payment, financial instruments, securities, foreign exchange, property rights or other movable or immovable property, originating from the proceeds of a criminal act, as well as transferring or converting them, assisting in the transfer of their ownership or possession, or taking other actions that may frustrate or significantly hinder the determination of their criminal origin or location, their detection, seizure or forfeiture.
The catalog of the listed criminal activities (receiving, possessing, using, transferring, exporting abroad, concealing, transferring or converting) is a closed catalog and at the same time defines the methods of money laundering. At the same time, it should be emphasized that criminal liability for the crime of money laundering can take place only if a certain behavior is qualified as one of the above-mentioned activities.
It should be noted that in the scope of the act under Article 299 of the Criminal Code, the perpetrator’s behavior must be characterized by double intent , i.e. the perpetrator must include with intentionality both the fact of undertaking certain causal actions and the fact that their object is certain assets of criminal origin.
The process of money laundering is aimed at legalizing funds from illegal activities, such as smuggling, drug trafficking, corruption, illegal gambling, tax crimes.
The charge of money laundering is often associated with the charge of operating as part of an organized criminal group.
What is the penalty for money laundering?
The process of money laundering is punishable by imprisonment from 6 months to 8 years. Those who commit it jointly with others or who make significant financial gains can be sentenced to between 1 and 10 years in prison. On the other hand, mere preparation for the crime of money laundering is punishable by imprisonment for up to 3 years.
If convicted of money laundering, the Criminal Code also provides for the possibility of a fine of up to PLN 6,000,000 (EUR 1,400,000) in addition to imprisonment.
In addition, in the case of a conviction for the basic type of the crime under consideration, the court shall obligatorily pronounce the forfeiture of objects derived directly or indirectly from the crime, as well as the proceeds of the crime or their equivalent, even if they are not the property of the perpetrator.
In a situation where the ruling of forfeiture of the indicated objects is not possible, for example, due to their loss or disposal, the court shall rule forfeiture of their equivalent. Pursuant to the provision under consideration, items whose manufacture, possession, circulation, transmission, transfer or transportation is prohibited are also subject to forfeiture, as long as they come directly or indirectly from the crime of money laundering.
A conviction for a money laundering offense also automatically results in a ban on serving as a member of a company’s board of directors, supervisory board, audit committee or liquidator. In addition, for any act related to professional or business activity, the court may order:
- a ban on holding a specific position
- a ban on practicing a specific profession or
- a ban on engaging in a specific business activity.
How to avoid punishment for money laundering – the no criminal record clause
Due to the complexity of the crime in question, resulting, among other things, in the fact that the detection of its perpetrators is often very difficult, the legislator introduced a clause waiving punishment. This is because, under certain circumstances, it guarantees impunity for the perpetrator who has committed the crime of money laundering.
The basis for the abrogation of criminality of the perpetrator is that the perpetrator voluntarily discloses to a law enforcement agency information about the persons involved in the commission of the crime and the circumstances of its commission, and that this behavior of the perpetrator prevents the commission of another crime.
In addition, the Criminal Code also provides for the possibility of waiving punishment or extraordinary mitigation of punishment for an offender who has repaired the damage caused by the crime in full or at least in substantial part. However, it should be emphasized that these institutions are only optional.
Key Facts about the crime of money laundering
| Fact | Description |
| Legal framework | Law on Anti-Money Laundering and Financing of Terrorism
Criminal Code Directive 2015/849/EU |
| Placement | Introduction of illegal funds into the financial system |
| Masking | a series of transactions designed to cover the traces of the origin of the funds |
| Integration | reinvestment of “laundered” funds in legitimate businesses |
| Penalties for money laundering | According to Article 299 of the Criminal Code, money laundering is punishable by imprisonment from 6 months to 8 years. In cases of lesser gravity, the punishment may be lighter, while in situations where the perpetrator acts in concert with others or has made this a permanent source of income, the punishment may be more severe |
| Institutions responsible for
Anti-Money Laundering |
In Poland, the main institution responsible for counteracting money laundering is the General Inspector of Financial Information (GIIF), operating within the Ministry of Finance. The GIIF cooperates with other state authorities and financial institutions to monitor and analyze suspicious transactions. |
| Responsibilities of financial institutions | Financial institutions are required to apply financial security measures, including identifying customers, monitoring transactions and reporting suspicious operations to the GIIF. If a higher risk of money laundering or terrorist financing is identified, these institutions must take additional measures, such as applying enhanced financial security measures. |
| Ultimate Beneficiary: | The Central Register of Beneficial Owners was established to counter money laundering and terrorist financing. Companies, foundations, associations must be registered in this Registry. Our specialists can help with the determination of the Beneficiary and the completion of the necessary formalities related to the Registry. |
FAQ – Questions and answers about the crime of money laundering and financing of terrorism
What is money laundering?
Money laundering involves concealing the origin of illegal funds to create the appearance of legitimacy. These funds can come from various crimes. For example: drug trafficking, corruption or theft, tax crimes.
What are the distinguished stages of money laundering?
Money laundering is a complex process. The introduction of proceeds from illicit and undisclosed sources into the economy is usually carried out as 3 stages of money laundering: placement, masking, integration. An important complication for anti-money laundering is that these 3 phases can occur either separately or together, or, as happens most often, they can intermingle.
What does placement consist of?
Placement is the physical introduction of funds from illegal activities into circulation.
Placement takes the form of activities such as:
- depositing money into an account,
- making a bank transfer,
- purchase of financial instruments,
- acquisition of tangible goods (e.g., real estate).
Several methods of money laundering are also evident at the placement stage, including:
- structuring – splitting deposits,
- smurfing – shredding of deposits,
- refining – exchanging banknotes,
- blending – mixing clean and dirty money
What is masking?
Masking is a series of transactions designed to cover up the traces of the origin of funds.
What does integration consist of?
Integration involves reinvesting “laundered” funds in legitimate businesses. The process involves finding legal and economic justification for holding certain assets.
Is there a limit to make a cash transaction in Poland?
Cash payment is possible if the one-time value of the transaction does not exceed the equivalent of PLN 15.000 zł gross. When the value of the transaction exceeds PLN 15.000 zł gross, the payment must be made using a payment account. This limit applies to transactions between entrepreneurs, so in the B2B segment. Transactions between an entrepreneur and an individual are not subject to this limit.
Financial institutions are required to report cash transactions exceeding this threshold as part of anti-money laundering (AML) regulations to prevent money laundering activity and the circulation of illegally gained money within the global financial system. These reports are analyzed by the Financial Intelligence Unit, which works to detect and combat financial crime.
What entities are designated to fight money laundering?
Various institutions are responsible for fighting money laundering, including: General Inspectorate of Financial Information (GIIF), Police, Prosecutor’s Office and other bodies investigating money laundering cases, as well as Banks and other financial institutions.
What are the penalties for money laundering?
The penalties for money laundering are severe. In Poland, it is a crime punishable by imprisonment from 6 months to 8 years.
How can our specialists help you?
Our specialists prepare and implement internal AML procedures and develop other necessary documentation in this regard for clients, represent clients in administrative, criminal and criminal-fiscal proceedings. We also offer legal assistance in the case of blocking bank accounts, which are often done in connection with the authorities’ suspicion of money laundering by an entity. Contact us at [email protected].
What role do financial institutions play in preventing money laundering?
Financial institutions are required to follow anti money laundering regulations, which include identifying customers, monitoring financial transactions, and reporting suspicious activity. They must also file suspicious activity reports and currency transaction reports to help authorities combat money laundering and prevent the misuse of the legitimate financial system.
How do criminals use shell companies to launder money?
Shell companies are often used to hide the origins of illegitimate funds by creating complex layers of additional transactions. These entities have no real business operations but serve to create confusion and obscure the true ownership of criminal proceeds. Authorities require customer information and special measures to identify the legitimate source of assets within these entities.
What are the reporting obligations for financial institutions regarding suspicious transactions?
Under anti money laundering legislation, financial institutions must report suspicious activity and file reports on transactions that may involve criminal enterprises or illicit funds. This includes reporting significant amounts of money transfers, identifying predicate offenses, and ensuring compliance with existing laws to protect the legitimate financial system.
Are private individuals subject to anti-money laundering regulations?
Yes, while anti-money laundering (AML) regulations primarily require financial institutions to monitor transactions, private individuals can also be subject to scrutiny if they engage in numerous accounts, large cash transactions, or activities linked to tax evasion, illicit funds, or criminal organizations. Authorities may investigate individuals suspected of making illegally gained proceeds or disguising legitimate income through money laundering activity.
What role do international bodies play in anti-money laundering efforts?
International bodies, such as the United Nations Office, the European Union, and the Financial Action Task Force (FATF), set global standards to combat money laundering activity. These organizations work together to prevent illicit activities, regulate financial institutions, and protect the global financial system from the flow of illegally gained money.
