PREVENTION OF MONEY LAUNDERING AND TERRORIST FINANCING ACT
On 23 March 2022 National Assembly adopted new Prevention of Money Laundering and Terrorist Financing Act. The Act transposes the provisions of Directive (EU) 2015/849, including its amendments in Directive (EU) 2018/843, certain provisions of Directive (EU) 2019/1153 and Directive (EU) 2019/2177. Alongside, the Act also regulates in more detail the implementation of Regulation (EU) 2018/1672.
The key changes provided by the Act are:
- provision concerning data obtained for the purposes of the register of virtual currency service providers;
- serious infringements of this Act as a reason for being deleted from that register have been added to the Act; and
- an explicit obligation of liable parties who have majority-owned branches and subsidiaries in the Member States and in third countries to establish effective policies, controls and procedures proportionate to the risk situation of the group as a whole.
The Act shows the intention to simplify procedures and increase digitization by introducing the possibility of review of a client without a personal presence, if unknown risk is identified and loosening of requirements related to video-electronic identification and introduction of electronic and remotely controlled identification procedures.
Certain obligations are extended for liable parties as they will have to assess or further obtain information on the purpose and intended nature of the business relationship and transaction in such a way to understand the purpose and nature of the business relationship or transaction. The obligation to verify the compliance of the client's business is also added in such a way that the liable person can justify the compliance of the client throughout the business relationship.
The provision representing the possibility for audit firms and independent auditors to carry out a simplified client review has been deleted. Furthermore, the new Act no longer contains a requirement for an in-depth review of a client if his legal representative is a politically exposed person.
In addition, the Act stipulates new offenses in the event of non-response if the supervisory authority requests the submission of documentation and information and if the liable party does not provide regular internal controls or does not report the enforcement of the decision to the inspector within eight days of the expiry of each deadline for the enforcement of the decision.
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