Criminal compliance refers to a comprehensive system of policies, procedures, and internal controls implemented by companies to ensure that business activities fully comply with applicable criminal laws. It aims to prevent the occurrence of crimes within the organization by raising awareness, establishing clear rules, and minimizing legal risks related to unlawful corporate conduct. Criminal compliance addresses risks arising from employees, managers, and third parties acting on behalf of the company, helping the entity avoid criminal liability.

• Under Polish law, criminal liability can attach not only to individuals but also directly to companies as legal entities.
• Potential offenses include economic crimes, corruption, tax fraud, environmental violations, and workplace offenses that may carry fines, sanctions, or even restrictions on business activities.
• Effective compliance programs serve as preventive tools, helping companies demonstrate that they take serious measures to prevent criminal behavior, which may influence decisions by prosecutors or courts toward more lenient treatment.
• Additionally, compliance enhances corporate governance and protects the company’s reputation, avoiding costly legal disputes and loss of stakeholder trust.

Common areas addressed by criminal compliance in Poland include:

• Fraud, embezzlement, and financial statement manipulation
• Bribery, corruption, and illicit granting of benefits to public officials or private parties
• Tax evasion and related fiscal crimes
• Money laundering and financing of terrorism
• Environmental offenses such as pollution or illegal waste disposal
• Violations of labor regulations that have criminal penalties
• Offenses under special laws such as those governing competition, public procurement, or product safety

Typical criminal compliance services and components include:

• Risk Assessment: Identifying specific crime risks based on industry sector, business model, and regulatory environment.
• Internal Procedures: Drafting and implementing policies such as anti-corruption codes, whistleblowing systems, internal reporting channels, and ‘Know Your Customer’ protocols.
• Training and Awareness: Conducting regular workshops and seminars for employees and management to ensure understanding and adherence to compliance obligations.
• Auditing and Monitoring: Carrying out periodic audits to detect vulnerabilities, irregularities, or potential breaches and monitoring compliance effectiveness over time.
• Internal Investigations: Performing discreet inquiries when suspicion arises to gather evidence, identify culprits, and prepare for potential cooperation with law enforcement.
• Legal Advisory: Guiding company executives and legal teams on criminal law requirements, compliance best practices, and real-time issues during inspections or investigations.
• Crisis Management: Supporting response efforts in case of legal proceedings, including PR coordination to mitigate reputational damage.

Criminal compliance is especially valuable for:

• Company owners and the management board, who bear ultimate responsibility for organizational conduct.
• Supervisory bodies such as audit committees and compliance officers tasked with oversight.
• Employees across all levels who need clear guidelines on lawful conduct.
• Auditors and external consultants assisting with risk assessment and compliance audits.
• Whistleblowers who require secure channels to report suspected wrongdoing without fear of retaliation.
• Legal counsel advising on preventive measures and defending companies facing criminal allegations.

• By proactively implementing compliance controls, businesses demonstrate due diligence and a commitment to legal standards, which courts and prosecutors may consider mitigating factors during enforcement proceedings.
• Early detection through monitoring and internal investigations allows businesses to address issues before escalation and cooperate with authorities, often resulting in reduced penalties or avoidance of criminal charges.
• Robust policies help prevent the spread of illegal practices internally by setting clear standards and consequences for non-compliance.
• Compliance reduces the risk of damaging investigations, costly litigation, and adverse publicity that could impact financial stability and market position.

Internal investigations are essential tools to:

• Verify suspicions of wrongdoing raised by audits, whistleblowers, or routine controls.
• Collect and preserve evidence in a manner consistent with legal requirements, which can be crucial if authorities get involved.
• Assess the extent of misconduct, identify responsible individuals, and propose corrective or disciplinary action.
• Demonstrate the company’s willingness to self-police and cooperate, positively influencing enforcement outcomes.
• Protect the integrity of the organization while minimizing exposure to criminal or civil liability.

• Whistleblower mechanisms are critical compliance elements designed to encourage reporting of illegal or unethical conduct.
• Poland’s laws mandate protection against retaliation for employees and other persons who report wrongdoing.
• Effective programs provide confidential, accessible channels for reporting concerns safely.
• Ensuring anonymity and following up transparently fosters a culture of openness and accountability, thereby facilitating early risk mitigation.

To build an effective criminal compliance system, companies should:

• Start with a comprehensive risk assessment tailored to their specific operations, size, and exposure to criminal risks.
• Develop customized policies addressing identified risks, ensuring alignment with Polish criminal law and industry best practices.
• Engage leadership to ensure commitment and allocate resources for compliance initiatives.
• Train employees regularly about legal obligations and internal procedures.
• Establish effective monitoring mechanisms and designate responsible persons or teams.
• Update policies periodically to reflect evolving legal standards or new risks.
• Consider using specialized consultants or external legal experts to enhance the program’s effectiveness.

Absolutely. In addition to shielding the organization from legal consequences, criminal compliance:

• Demonstrates to clients, investors, regulators, and partners that the company is committed to ethical and lawful business conduct.
• Helps prevent scandals that can result in loss of consumer trust, stock value declines, or difficulties in securing contracts and financing.
• Enables prompt, coordinated responses to incidents, which limit reputational damage and reassure stakeholders.
• Fosters a corporate culture where compliance and integrity are valued, making the company more resilient in the face of challenges.