Money laundering affects not only fiat currencies but also cryptocurrencies. The development of new technologies, in addition to its undeniable benefits, creates numerous opportunities for various types of abuse and generates previously unknown forms of crime.
In response to the growing popularity of cryptocurrencies, both EU and Polish AML regulations have imposed special obligations on entities conducting activities related to the exchange and storage of virtual currencies.
Of key importance for the cryptocurrency market in Poland is undoubtedly the Act of 1 March 2018 on Counteracting Money Laundering and Terrorist Financing, which implemented the EU AML IV and partially AML V directives into the Polish legal system.
This Act not only introduced a legal definition of "virtual currency" into the Polish legal system, but also expanded the list of obligated entities to include "entities conducting business activities consisting in the provision of services in the field of:
- exchanges between virtual currencies and means of payment;
- exchanges between virtual currencies;
- intermediation in the exchange referred to in point 1 or 2.
As a side note, it is worth mentioning that the above-mentioned list of entities is much broader than the one proposed by Directive 2018/843, which does not cover the issue of exchanging cryptocurrencies for other cryptocurrencies or intermediation in the exchange of cryptocurrencies.
Under current law, if you provide even one of the above-mentioned services as part of your business, you must apply financial security measures to your clients. In particular, you should:
- conduct risk assessments and implement procedures enabling the verification of contractors, both natural and legal persons;
- analyze transactions carried out;
- appoint persons responsible for the performance of obligations arising from the AML Act (AML Compliance Officer).
It is worth remembering that failure to implement AML procedures constitutes a violation of the provisions of the Act on Counteracting Money Laundering and Terrorist Financing, which may result in the imposition of a severe fine on such an entity of up to EUR 1,000,000.
