FATF-MONEYVAL Regulations for Poland
MONEYVAL has been an associate member of FATF since 2006. It is a body of the Council of Europe that assesses compliance with fundamental international standards against money laundering and financing.
MONEYVAL's mutual evaluation process enables countries to better deal with AML and CFT with regular reports and peer reviews. Its goal is to ensure that member states have effective systems against AML/CFT and comply with international standards in this regard.
The FATF report summarizes the measures of Poland's AML/CFT system in May 2022 and gives suggestions on the level of effectiveness and how the system can be strengthened. It also analyzes the level of compliance with the FATF 40 recommendations.
The Increased Risk in Poland; AML/CFT
Although the terrorist threat is considered low in Poland, it is noticed that the geopolitical situation and the risk of military action are in certain danger. According to the first national risk assessment (NRA) in 2019, Poland was exposed to risks such as
corruption, drugs, money laundering from human trafficking, financing of terrorism, tax crimes.
At the same time, according to the report, crimes related to smuggling of migrants, crimes against property and economic transactions, infringement of copyright and industrial property rights pose a high risk of money laundering from international and local criminal groups. The fact that it is on the route of crimes from Eastern Europe and South-Eastern Asia and its use has brought all the high risks that may occur.
After the evaluation, Poland tried to strengthen the money laundering and terrorist financing laws and reduce the risks. At this point, the important thing is to activate the laws. According to the report, authorities must be able to criticize and interpret the criminal justice system and international cooperation activity. According to the FATF, there is a need to implement a mechanism that systematically collects comparable statistics to enable authorities to evaluate it. Appropriate analysis and reasonable conclusions are needed, as authorities are limited in understanding money laundering in certain premise crimes.
In particular, it is necessary to gain the ability to monitor the financial activities and cash movement transfers of individuals, groups, and organizations interested in infiltrating the AML/CFT system carried out through the Hawala networks in the country. Deposit legislation is required to comply with FATF recommendations. Two platforms take restrictive measures from the AML/CFT field to address issues of coordination and cooperation. The first is the FSC Financial Security Committee. The second platform is an inter-ministerial team of 22 members. Their duties include developing draft standards and procedures for monitoring threats knowing opinions and consequences.
According to the FATF, There are urgent action needs that authorities should take for ensuring that the seizure of criminal proceeds, vehicles, and comparable property is pursued as a policy objective. A consistent implementation should be developed to improve the asset tracking, seizure, and recovery aspect of investigations. A detailed analysis should be made that covers all aspects of high potential crimes, international and national money launderers' activities, and the country's exposure to terrorist financing risk.
Most importantly, a systematic approach should be brought to align the risk assessment results with AML/CFT policies by including them in their roles and priorities, and institutional and operational changes should be implemented.
Develop and implement a comprehensive set of criteria for prioritizing suspicious transaction reports and related analytical transactions.
Supervision should be increased in all regulated institutions. Under Article 86 of Poland's AML/CFT law, reporting for high-risk suspects and accounts used to transfer funds through the country's financial system must be frozen and blocked if necessary.
Certain procedures must be followed to ensure that black money is detected and investigated.
- Identifying a consistent system for assigning LEAs to ML investigations
- Pursuing money laundering and solving crimes
- Ensure that the financial aspect is systematically explored by LEAs and their detailed guidance is provided in parallel with the ML
- Proactive investigation of cases should be ensured by developing a mechanism for detecting suspicious transactions.
Another conclusion from the Polish assessment is that technical deficiencies under R30 and 32 must be addressed for measures to be taken to ensure that CFT is a crime in itself and not a by-product of terrorism.
While the private sector is better at dealing with AML/CFT risks, countermeasures against terrorist financing exploitation by the nonprofit sector should be implemented. Awareness-raising activities should be carried out in the private sector, some authorized persons regarding TFS liabilities related to money laundering.
Poland should address existing gaps in the prevention of criminal control of regulated institutions, and resources should be made available to allow risk-based supervision. For inspection to be effective, it must include hand coordination and monitoring by GIFI. It should also develop the NRA to undertake a comprehensive risk assessment. In order for the basic and beneficial ownership information held in Poland to be sufficient and accurate, the Financial Security Committee should ensure that the authorities undertake sound coordination of risk-based activities.