AML / CFT policy – what is it actually?

“AML“, an acronym for Anti Money La undering, whose inseparable companion is “CFT” meaning Combating the Financing of Terrorism.

Inherent because in Poland ‘AML’ is the term used to describe the procedure introduced by the Act on Counteracting Money Laundering and Terrorist Financing. As the name of the Act indicates, it is precisely the title prevention and reporting of money laundering and terrorist financing offences. In addition, the AML Act regulates the performance of business activities by so-called obliged institutions.

The offence of money laundering can be found in Article 299 § 1 of the Criminal Code. The reference in the name to a typical domestic laundering activity is not coincidental. It refers to conduct aimed at the apparent cleansing of funds originating from the so-called underlying offence, e.g. fraud, extortion (so-called dirty money) from the features of the offence and leading to a situation in which they are given the appearance of originating from legal sources.

In turn, the elements of financing a terrorist offence, can be found in Article 165a § 1 of the Penal Code. This involves the transfer of assets for the purpose of financing the title terrorism, but also related offences such as piracy, hostage-taking or the circulation and accumulation of dangerous substances.

Obligated institutions – does my business belong to them?

The AML Act, as a countermeasure, additionally regulates the performance of business activities by so-called obliged institutions.

Being an entrepreneur in Poland, when faced with the discussion of AML /CFT policy, the question itself arises whether my business is also obliged to implement the imposed regulations.

Obligated institutions (hereafter: ‘IOs’) are entities on which a number of obligations have been imposed. Their purpose is, of course, to hinder or prevent money laundering and terrorist financing, and the means to this end is the regular monitoring of cash flows.

A catalogue of IOs can be found in Article 2(1) of the AML Law. Although the enumeration is really detailed, in practice there are doubts of interpretation as to whether one belongs to any of the groups. It is worth knowing that this is a closed catalogue. If an entity does not provide the services specified therein then it is not an IO.

A simplified directory of IOs can be found in the FlipBook 1 part of the series on AML / CFT below – check if your business is in it.

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