Autumn 2021 – changes in the AML Act
The next stage of the amendment process for regulations concerning counteracting money laundering and the financing of terrorism, which began on March 30th, 2021, has come. On October 31st, 2021 an amended Act of 1st March 2018 has been introduced under the 5th AML Directive.
The amendment adds more obligations for Polish enterprises and accounting offices. What new challenges will accountants face and what should they focus on?
Accounting offices and changes in AML
The amendment to the Act on Counteracting Money Laundering and the Financing of Terrorism means more work for accountants, including even more restrictive financial security measures, more scrupulous supervision of beneficiaries, and more workshops for employees.
The amendment includes inter alia an extension of the list of business entities entered into the Central Register of Beneficial Owners (CRBO). In addition to general and limited partnerships, professional partnerships, European companies, foundations, co-operatives entered into the National Court Register, and European Economic Interest Groupings were added. Furthermore, more frequent verifications of CRBO are now required.
Accounting offices and new AML-related obligations
Consequently, accounting offices face more responsibilities and obligations. Accountants are obligated to assess financial risk connected to possible money laundering or terrorism financing, and implement specific solutions under the Act. This will allow reporting on any infringements become more effective and prevent dishonest activities which could compromise company’s financial security. Accounting offices will need to provide workshops for employees, accurately verify beneficial owners’ identity, and archive all documentation confirming conducted transactions. An inspection of internal procedures in accordance with the amendment will also be necessary.