The time for the implementation of EU regulations concerning anti-money laundering (AML) is running out, putting Polish banks in a position where they must intensify preparations. The new regulatory package, which includes the 6th AML Directive and the establishment of the European Anti-Money Laundering and Counter Terrorism Financing Office (AMLA), aims to unify rules that counter money laundering across the European Union. Polish financial institutions must comply with these new requirements by the middle of 2025. Jewellers and even football clubs will soon follow suit. Failure to implement these regulations could result in penalties of up to 20 million EUR or 10% of the company’s annual turnover. The discussion on this topic among Polish and foreign experts can be followed online during the Fight FinCrime Forum on Wednesday, November 21.
Bartosz Michałkowski, Director of the Financial Crime Prevention Department at NatWest Bank in Poland, points out the significant challenges facing the banking sector. “The clock is ticking, and Polish banks must act quickly to implement new standards. Undeniably, this requires substantial investment in technology and procedures, but it’s a step that can strengthen the entire industry in the long run,” says Michałkowski. He emphasizes that cooperation with AMLA and national supervisory bodies will be crucial for smooth implementation of the new rules, adding, “The new regulations could significantly increase the detectability of financial crimes and the efficiency of existing procedures by standardizing standards and enabling information exchange between obliged entities.”
The new anti-money laundering regulations in the European Union will be overseen by the newly created Anti-Money Laundering and Counter Terrorism Financing Office (AMLA), based in Frankfurt. This institution will directly supervise entities considered to be most risky and will also intervene in case of shortcomings by national supervisory bodies. In addition, AMLA will be the central point of cooperation between supervisory bodies and mediation in controversial situations.
“The establishment of AMLA is a step towards greater coordination in the fight against money laundering at the Union level,” notes Michałkowski, adding, “It’s important for us as the financial sector to have uniform rules of operation, but the key will be effective cooperation between AMLA and local regulators.”
Among the most significant changes introduced by the new package is the lowering of the thresholds for customer identification in transactions. Regulation now covers transactions from 10,000 EUR, even from 3,000 EUR for cash operations. In practice, this implies the need to modify systems for transaction monitoring. According to industry estimates, such changes could cost the Polish banking sector 15 to 20 million PLN per major institution.
“This is a major load, but we cannot look at these expenses only through the prism of costs. Well-implemented solutions can bring real benefits, both in terms of safety and reputation of the institution,” evaluates Michałkowski.
The new regulations are not limited to the banking sector. They also impact other areas like the real estate market, where it was previously hard to identify owners of foreign companies owning property in the EU. Now, companies and trusts that have owned property in the Union since 2014 will have to disclose their real owners in their registers.
The luxury goods market is also subject to new regulations. The sale of items worth more than 10,000 EUR, such as diamonds, gold, luxury cars and yachts, will require customer checks. For example, the sale of a car worth 250,000 EUR or a yacht for 7.5 million EUR will automatically trigger reporting to data analysis units and registration of the beneficial owner if the purchase is made by foreign companies or trusts.
Entities required to monitor money laundering, including banks, asset managers, real estate intermediaries, and from 2029, even football clubs involved in high-value transactions with investors and sponsors, will have to report suspicious transactions. This extension of regulations aims to make the system more stringent and increase the transparency of financial transactions in Europe. “The risk associated with player transfers and sponsorship contracts is real, and additional checks can help curb it,” indicates Michałkowski.
The AML package introduces uniform rules for combating money laundering and terrorism financing, which could result in an additional burden for financial institutions. Brussels has not determined the exact financial costs associated with implementing the new AML regulatory package. However, compliance costs are just part of the challenge. Financial institutions also need to train staff in new procedures, which involve additional costs estimated at around 500,000 PLN per bank. It is estimated that the total training time for staff responsible for AML procedures will be between 2,000 and 3,000 hours per institution.
“Training is essential, but it is important to go hand in hand with actual implementation of new procedures and results orientation. Without the right approach, even the best-trained employees may not be able to accurately identify and report suspicious transactions,” adds Michałkowski.
The Fight FinCrime Forum is an annual event that brings together experts in the field of anti-money laundering and financial crime prevention. The Forum creates a space for building relationships, sharing experiences and best practices, supporting the development of knowledge and cooperation in this crucial field. The event will take place on November 20 as part of Future Finance Poland.
Source: https://managerplus.pl/banki-pod-presja-nowych-regulacji-aml-60084
