AML/CFT Policy – Key Changes for Businesses

Pawnbroking – a new IO category

Almost at the very beginning of the year, the Consumer Pawn Loan Act came into force. The AML/CFT Act also received a ricochet. Specifically, pawnbrokers appeared in the IO directory from 7 January 2024.

Pawnbrokers already had to be well acquainted with the AML/CFT Act and the obligations arising from it on 7 January 2024, such as:

• designation of AML responsible persons
• implementation and application of the AML,
• employee training,
• reporting to competent authorities.

Those who have not implemented AML/CFT in their pawn shop must ensure that the correct procedure is in place immediately.

Failure to implement an AML/CFT policy means possible administrative sanctions and criminal liability, e.g. for the owner or members of the management board

Harmonisation of AML/CFT legislation

Negotiations related to the opening of a new common front in the fight against money laundering and terrorist financing by Member States have been ongoing at EU level since 2021. In February this year, a preliminary agreement was reached on part of a package of changes related to AML/CFT policy, and already in April the European Parliament adopted the new legislation. The aim of the new regulation is to put up a common EU wall, eliminating loopholes in the individual AML/CFT systems of the Member States.

Examples of proposed changes include:

• a ban on cash transactions above €10,000
• increased vigilance for cryptocurrencies – among other things, crypto-related service providers will be forced to verify customers with amounts as low as €1,000
• a uniform ownership/influence threshold of 25% for beneficial owners
• enhanced due diligence measures for those with assets of €50,000,000

AMLA – another European Union weapon in the fight against criminals

The European Union wants to fight money laundering and the financing of terrorism more effectively. A new agency has been set up for this purpose – The Anti-Money Laundering and Countering the Financing of Terrorism Authority or “AMLA” for short ).

The AMLA is a body that:

• will become operational in mid-2025
• will have its headquarters in Frankfurt am Main, but will cover the entire territory of the European Union
• will have the power to impose penalties and sanctions
• will cooperate with national AML/CFT authorities
• prepare guidelines related to AML/CFT policy

Football environment under the microscope of AML/CFT

Football notoriously has to face scandals of a criminal law nature. The bribery scandal at FIFA, accusations of money laundering by activists, the corrupt 90s and 00s in Polish and European football, investment in clubs by people on sanction lists – these are some of the sins of the football community that have been covered by the media.

As part of the AML/CFT amendment package, one of the institutions obliged from 2029 will be football clubs and football agents. Does this mean that, for example, Izolator Boguchwała or Coco Jambo Warsaw will have to implement an AML/CFT policy? Well (rather) no.

Definitions from the Regulation:

• Professional football club as IO – any legal entity managing or owning clubs playing in national competitions that contract players and staff for remuneration
  • .There are to be exceptions – Member States will decide on the limitation of the definition of football clubs as IO due to playing level and turnover below €5,000,000
  • Not all activities of football clubs will come under the AML/CFT magnifying glass – limitation to transactions with sponsors, investors, football agents and transfers of players.
• Football agent as IO – legal entities and individuals acting as intermediaries for remuneration in matters of contracts and transfers of players, both as agents for athletes and on the side of professional football clubs

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