These issues are of vital importance in light of the challenges Member States have to face, hence new requirements are being implemented which have to be met by ordinary business owners.
The Anti-money Laundering and Countering the Financing of Terrorism Act has been in effect in Poland since 2018. The Act is consequential to EU legislature, therefore regulations as regards combating the said activities can be found in any Member State. The Act has imposed new obligations on a number of businesses, and also on entrepreneurs themselves. You must have come across forms, e.g., in banks, where you had to indicate a beneficial owner – and that is the result of the said Act. Comprehensive procedures are to protect Member States from entities, whose financial means are related to criminal and terrorist activities. Therefore, EU and domestic legislatures keep abreast of all applicable procedures and update them on a regular basis.
As of 31st October 2021, following the implementation of the amendments to the EU regulations, i.e., the 5th AML Directive (Anti-Money Laundering), new regulations came into force aimed at providing information transparency as regards beneficial owners, which in fact imposes new obligations on a number of entrepreneurs.
The list of entities has been enlarged
Besides general partnerships, limited partnerships, professional partnerships, joint-stock limited partnerships, limited liability companies, simple joint-stock companies and joint stock companies, the obligation has been imposed on the following:
- professional partnerships,
- cooperatives,
- European cooperatives,
- associations subject to National Court Register entry,
- foundations,
- European economic interest groupings,
- European companies or partnerships,
- trusts, where trustees or persons hosting similar positions: reside in the Republic of Poland or have their registered offices here, or enter into economic relations, or acquire real estate in the Republic of Poland in the name or for the benefit of the trust.
Beneficial owners are required to indicate every citizenship
Beneficial owners have been obligated to indicate every citizenship they hold, which is a change from the current duty requiring beneficial owners to provide only one citizenship.
What is more, entities already registered with CRBR must also indicate any citizenship they have, which requires them to update entries in the Central Register of Beneficial Owners.
Existing entities must meet the foregoing obligation by 30th April 2022.
Due diligence
Institutions obligated by the Act (e.g., banks and notarial offices) must observe due diligence in identifying beneficial owners. What is also crucial is that such entities should not solely rely on the data entered in the CRBR but verify it themselves.
Collaboration with obligated institutions
Beneficial owners themselves will be required to collaborate with obligated institutions. Failure to provide compulsory data to an obligated institution will result in a financial penalty of PLN 50,000.
