AML Regulatory Compliance

APOG offers implementation, auditing and optimization of Risk Assessment, Policies and Procedures (P&P) and AML processes to ensure compliance with applicable and upcoming laws, regulations and best practices within AML/CFT regimes.

By conducting an AML audit, APOG identifies deficiencies in an organization's AML compliance systems and makes appropriate recommendations for improvements and process optimization.

We look at regulations to help clients detect the risks associated with non-compliance and potential financial crimes, and advise on best practices for creating and improving effective AML systems and controls.

We work in regulatory environments in the European Union, Great Britain and Switzerland.

AML – what is it?

AML (Anti-Money Laundering) is a series of provisions related to the Anti-Money Laundering and Countering the Financing of Terrorism Act. For many entrepreneurs, this issue may seem distant from the type of business they run. However, every business owner is obliged to comply with these regulations, regardless of the industry in which they operate.

AML and EU and Polish law

Anti-money laundering and countering the financing of terrorism is precisely defined by the applicable EU legislation. Provisions on this subject can be found both in the directives of the European Union and in the regulations of individual countries, including Poland. In our country, AML practices are covered by the Act of 1 March 2018 on Counteracting Money Laundering and Financing of Terrorism.

In accordance with the applicable regulations, a distinction is made between authorities and entities that operate under the AML system. The law speaks of their duties and privileges. The aim of such a system is to eliminate the practice of money laundering and to preserve the legal circulation of funds – including those obtained from illegal sources.

Who is affected by AML procedures?

The implementation of AML is necessary in companies that have been included in the Anti-Money Laundering and Countering the Financing of Terrorism Act. They are distinguished primarily by the type of business activity or the amount of turnover. AML must be used, m.in by entities such as:

• investment firms,
• custodian banks,
• payment and electronic money institutions,
• banks – domestic, branches of foreign banks, credit and financial institutions,
• savings and credit unions,
• companies dealing with the trade or intermediation in the sale of works of art, antiques and collectibles,
• companies operating a regulated market,
• foreign entities conducting brokerage activities,
• companies in the field of currency exchange activities,
• insurance companies and insurance intermediaries,
• real estate agents
• foundations and associations,
• notaries, attorneys-at-law, tax advisors, legal advisors,
• companies dealing with keeping tax books and consulting in this area.

The obligation to introduce AML procedures also applies to entrepreneurs making cash payments worth at least EUR 10,000, postal operators and companies providing safe deposit boxes. Every entrepreneur should make sure whether their business qualifies for this obligation. Detailed information on this subject can be found in the above-mentioned Act.

What are the goals of the AML system?

The most important objectives of the AML system include:

• detection and prevention of money laundering – one of the main objectives of the AML system is to identify, monitor and prevent activities that may be related to money laundering,
• Limiting the financing of terrorism – AML also aims to detect and prevent the financing of terrorist activities. These systems monitor transactions and activities that may indicate the transfer of funds to illegal organisations,
• Compliance – Financial institutions are required to comply with various AML regulations. These systems help in meeting legal requirements and avoiding large fines and serious consequences,
• Preserving the integrity of the financial system – AML helps maintain trust and stability in the global financial system by ensuring that AML institutions are not used for criminal activities,
• Protecting the reputation of institutions – Complying with AML rules helps financial institutions protect their reputation. Potential involvement in money laundering or terrorist financing can seriously damage a company's position,
• Risk awareness and staff training – AML systems require institutions to conduct regular training for employees on how to detect and report suspicious activities and understand money laundering risks.

The implementation and support of AML provides greater security for the company, as well as for the entire country. This system is also valid abroad, which unifies the terms of cooperation between companies from different countries.

Consequences of not introducing an AML system

An entrepreneur who does not decide to implement AML despite the statutory obligation is exposed to many serious consequences. Most often, it is a severe financial penalty. It also happens that information on this subject appears in publications about the violation of the BIP Act, and the company is prohibited from undertaking certain activities. Other potential consequences include the revocation of the permit or concession, or even removal from the register of regulated activities.

Entrepreneur's obligations related to AML

AML procedures are clearly defined by applicable laws. We help you implement the whole system properly and follow it later. The most important duties of an entrepreneur in this respect include:

• introduction of an internal procedure for the obligated institution – a member of the management board who will be responsible for the implementation of such a procedure and persons supervising the manner of its implementation should also be appointed,
• risk assessment – the entrepreneur is obliged to apply financial security measures, such as detailed verification of contractors,
• reporting irregularities – as part of the implementation of AML, a procedure for responding to any irregularities is introduced. Whistleblower policies must be established in the company,
• providing information on beneficial owners – this is the obligation of partnerships and public joint-stock companies.

We provide comprehensive AML support, helping the client to meet their statutory obligations. We make sure that all procedures are in accordance with the applicable law.

AML audit

Our company also conducts AML audits. We analyze the activities of companies that are obliged to implement this system. We check whether the processes are carried out in accordance with the applicable law and indicate the areas that require changes. We focus on risk analysis and prevention of potential irregularities.

We provide the result of an AML audit in the form of full documentation along with solutions to help eliminate the risk of money laundering or financing terrorist activities in a given company. We precisely indicate ways to adapt the company's operations to the applicable regulations and assumptions of the AML system.

Comprehensive AML support

AML support allows you to improve the quality of the way your statutory obligations are met. We advise entrepreneurs and indicate what to do to detect threats even more effectively and protect the company from inappropriate cooperation. We also offer AML support in terms of contacting state authorities that carry out inspections in enterprises. We appear before them on behalf of a given entrepreneur, ensuring a positive result of the analysis. To determine the details of the implementation of AML procedures, we encourage you to contact our company.

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