Money Laundering in Poland: Legal Framework and Penalties

Money laundering in Poland is the process of accepting, possessing, using, transferring abroad, concealing, transferring, converting or otherwise dealing with assets derived from benefits connected with the commission of a prohibited act in a way that may hide their criminal origin, location, detection, seizure or forfeiture. In business practice, the risk usually concerns funds, real estate, shares, receivables, crypto-assets, luxury goods or other proceeds of crime introduced into legal circulation.

The Polish framework combines criminal liability under the Criminal Code with preventive obligations under anti money laundering regulations. For companies, this is not only a criminal law issue. It may affect bank relationships, management liability, transaction security, investor due diligence, reputation and business continuity.

Money laundering Poland – criminal offence under Article 299 of the Criminal Code

The core offence is regulated in Article 299 of the Polish Criminal Code [1]. Liability may arise when a person accepts, possesses, uses, transfers abroad, conceals, transfers, converts or assists in transferring property derived from benefits connected with the commission of a prohibited act. The provision also covers actions that may frustrate or significantly impede the determination of criminal origin, location, detection, seizure or forfeiture of such property.

The offence does not require a sophisticated international structure. A domestic transfer, a fictitious invoice, a sham loan, an artificial sale of shares or the use of a company account may be sufficient if the statutory conditions are met. The key issue is whether the assets are connected with proceeds of crime and whether the conduct was capable of concealing or obstructing identification of that origin.

In proceedings, facts must be separated from assumptions. The prosecution must prove the elements of the offence, including the criminal origin of the assets and the conduct described in Article 299. The exact evidentiary assessment depends on the factual situation, the predicate act and the role of the person involved.

Penalties for money laundering in Poland

Under Article 299 § 1 of the Criminal Code, the basic form of money laundering is punishable by imprisonment from 6 months to 8 years [1]. The same penalty applies to certain conduct by persons acting within banks, financial institutions, credit institutions or other entities listed in Article 299 § 2, where the conduct relates to accepting, transferring or converting assets in circumstances covered by the provision.

More severe liability may arise where the perpetrator acts in agreement with other persons or achieves a considerable financial benefit. In such cases, Article 299 § 5 and § 6 of the Criminal Code provide for imprisonment from 1 year to 10 years [1].

Conviction also leads, under statutory conditions, to forfeiture of items derived directly or indirectly from the offence, or equivalent value, subject in particular to the rights of injured or otherwise entitled parties. This is particularly important for companies and individuals holding assets that prosecutors consider to be directly or indirectly connected with money laundering. Forfeiture may affect bank accounts, real estate, vehicles, shares, receivables and other property, subject to statutory conditions and the rights of injured parties.

AML Poland – preventive obligations for businesses

The preventive anti money laundering system is regulated mainly by the Act of 1 March 2018 on Counteracting Money Laundering and Terrorist Financing [2]. The Act imposes obligations on “obliged institutions”, including banks, payment institutions, certain investment firms, notaries, accountants, tax advisers, real estate intermediaries, entities conducting activity in the field of virtual currencies and selected other entities.

Typical AML duties include:

• customer due diligence, including identification and verification of the client and beneficial owner,
• assessment of the purpose and intended nature of the business relationship,
• ongoing monitoring of transactions and client relationships,
• internal AML risk assessment and procedures,
• reporting suspicious transactions or activities to the General Inspector of Financial Information,
• training employees and documenting AML decisions.

These obligations matter because AML failures may trigger administrative penalties, reporting to authorities, account blocking, termination of banking services and reputational damage. The General Inspector of Financial Information may demand suspension of a transaction or blocking of an account under the conditions and time limits set out in the AML Act [2]. In serious cases, prosecutorial measures may follow.

Proceeds of crime and predicate offences

Money laundering requires a connection between the assets and benefits derived from a prohibited act. The predicate conduct may include fraud, bribery, tax crime, cybercrime, drug offences, organised crime, market abuse or other offences. In business matters, laundering allegations often follow investigations into VAT fraud, corruption, embezzlement, misappropriation, invoice fraud or breach of trust.

A company may be exposed even if the predicate offence was committed by a contractor, shareholder, employee or intermediary. The practical risk is highest where there are unusual payment routes, shell entities, unexplained cash flows, inconsistent commercial rationale, artificial consulting services, circular transactions or rapid transfers through multiple accounts.

Legal privilege and the three exceptions in AML Poland

Lawyers may be treated as obliged institutions only in the situations specified by the AML Act, especially when they participate in certain financial or corporate transactions. At the same time, the Act protects core defence and legal assistance functions. In practical terms, the three exceptions are:

1. determining the client’s legal position;
2. performing the function of defending or representing the client in judicial proceedings or in proceedings before public authorities;
3. providing advice on instituting or avoiding such proceedings.

These exceptions are important in criminal defence and litigation strategy. They do not remove AML obligations in every business transaction. The correct qualification depends on the factual situation, the scope of the legal service and the statutory role performed by the lawyer.

Corporate risk: why anti money laundering compliance matters

For management boards, AML risk in Poland should be treated as part of governance, not only as a compliance checklist. Weak controls may lead to freezing of funds, delayed transactions, loss of financing, termination of contracts, regulatory inspections and criminal proceedings against individuals. In regulated sectors, AML deficiencies may also affect licences and relations with supervisory authorities.

Effective controls should be proportionate to the company’s risk profile. This usually means clear onboarding rules, beneficial owner verification, sanctions and PEP screening, transaction monitoring, escalation paths, documentation of red flags and practical training for employees who process payments or approve counterparties.

In suspicious situations, speed matters. Internal decisions should preserve evidence, avoid tipping-off risks, protect legal privilege and ensure that management does not take steps that could later be interpreted as assistance in concealing criminal origin.

How KKZ lawyers support money laundering cases

Kopeć & Zaborowski (KKZ) assists in matters involving criminal liability, AML compliance, internal investigations and crisis response. The law firm’s work may include defence in proceedings under Article 299 of the Criminal Code, representation of injured parties, assessment of transaction risks, support during account blocking and preparation or review of AML procedures.

In business cases, legal analysis is usually combined with a review of documents, payment flows, corporate links and communications. This helps distinguish a documented commercial transaction from a structure that may expose the company or its managers to allegations involving proceeds of crime.

This is informational material, not legal advice. The legal assessment of money laundering risk always depends on the facts, documents, parties involved and procedural stage.

Contact in criminal matters

If a case involves allegations of money laundering, proceeds of crime or account blocking in Poland, it may be useful to consult a criminal lawyer and obtain an assessment of the situation. Early analysis can help identify possible procedural steps, evidence risks and duties under AML regulations.

FAQ – Money Laundering in Poland

What is money laundering under Polish law?

Money laundering is conduct involving assets derived from benefits connected with the commission of a prohibited act, where the conduct may conceal or obstruct identification of their criminal origin, location, detection, seizure or forfeiture. The main legal basis is Article 299 of the Polish Criminal Code [1].

What are the penalties for money laundering in Poland?

The basic penalty is imprisonment from 6 months to 8 years. If the perpetrator acts in agreement with other persons or obtains a considerable financial benefit, the penalty may be imprisonment from 1 year to 10 years [1].

Can a company be affected by a money laundering investigation?

Yes. A company may face account blocking, seizure of documents, reputational damage, contract disruption and internal management risk. Individuals acting for the company may also face criminal liability if statutory conditions are met.

Does money laundering require a prior conviction for the predicate offence?

Not always in practical procedural terms. The prosecution must prove the criminal origin of the assets to the standard required in criminal proceedings, but the exact evidentiary path depends on the case and the predicate conduct.

Who supervises AML obligations in Poland?

The General Inspector of Financial Information plays the central role in the Polish AML system. Sector regulators may also be involved, depending on the type of obliged institution and the nature of the breach [2].

What should a business do if it detects suspicious funds?

The company should secure documents, avoid informal explanations, assess reporting duties, preserve legal privilege and involve appropriate decision-makers. If the entity is an obliged institution, duties under the AML Act must be verified immediately.

Bibliography

1. [1] Act of 6 June 1997 – Criminal Code, Journal of Laws 1997 No. 88 item 553, as amended, Article 299.
2. [2] Act of 1 March 2018 on Counteracting Money Laundering and Terrorist Financing, Journal of Laws 2018 item 723, as amended.
3. [3] General Inspector of Financial Information, official AML/CFT information and communications, Ministry of Finance, available at: https://www.gov.pl/web/finanse/generalny-inspektor-informacji-finansowej
4. [4] Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, as amended.