AML obligations for accounting firms – what is worth knowing?

AML obligations for accounting offices – what’s worth knowing?

AML obligations for accounting firms - what you should know — AML obligations for accounting offices – what you should know

AML, or Anti-Money Laundering, stands for anti-money laundering. Next to terrorist financing, it is the second crime criminalized by Articles 299 and 165a of the Criminal Code.

These are acts of high harm to the financial market. The mechanism of their operation is often based on taking advantage of inattentive or completely unaware entrepreneurs. For this reason, among others, the Anti-Money Laundering and Terrorist Financing Law (or AML Law) saw the light of day in 2018. How does its content apply to the activities of accounting offices?

What does the AML Law say about accounting offices?

In the AML Law we will find a list of entities on which specific AML and terrorist financing obligations have been imposed. These are entities engaged in activities most often associated with large capital flows. Thus, among the so-called obligated institutions according to the AML Law we will find investment funds, real estate agents and domestic banks.

According to the wording of Article 2(1)(17) of the Act, this category also includes entities engaged in the business of providing bookkeeping services. On the other hand, after the amendment introduced on July 31, 2021, in the form of Article 15a, the list also includes entrepreneurs whose primary business activity is the provision of services involving the preparation of returns, keeping of tax books, providing advice, opinions or explanations on tax or customs laws.

The amendment thus made all offices engaged in accounting or tax consulting obliged to comply with the regulation. It does not matter what their organizational and legal form is, the size of their business, or the number of employees.

Obligations of the accounting office as an obligated institution

It should be remembered that the legislator has imposed a number of specific obligations on obligated institutions. Failure to comply with them can result in incurring very severe penalties. Every accounting office, even those that are small and deal with bookkeeping for micro-entrepreneurs, are subject to the same serious requirements as investment funds or banks.

First, accounting offices must draft and implement AML procedures and related documentation. Among other things, it is necessary to apply financial security measures to individual counterparties and verify their identity. One of the most important issues is undoubtedly the obligation for accounting firms to develop a written or electronic risk assessment. The purpose of such a document is to identify money laundering risks that arise from the business. The risk assessment must also propose solutions and procedures to minimize these risks. What’s more, it must be updated regularly – whenever the need arises and at least every two years.

An accounting firm’s internal AML procedure should include regulation of, among other things, such issues as: risk assessment and analysis, principles for educating employees on the subject of AML, ways of recording transactions, principles of control and supervision, the bureau’s internal procedures in the context of providing information on transactions to the GIIF (Chief Inspector of Financial Information), or principles for applying financial security measures, i.e. specific tools listed in Article 34 of the Act:

customer identification and verification of the customer’s identity,
identification and verification of the beneficial owner (PEP), i.e., the person actually influencing the customer’s decisions,
evaluation of economic relations and, as appropriate, obtaining information on their purpose and intended nature,
ongoing monitoring of the client’s economic relations.

For more on this topic, see this article: AML for accounting offices

Implementation of AML procedures – key issues

In the business of accounting offices, it is standard to be in contact with a large number of various transactions. As a result, one of the most important obligations under the AML Law is to report information to the GIIF. According to Article 72 of the aforementioned law, information must be provided on each transaction made or registered with a value that exceeds 15 thousand euros, and within 7 days of its execution.

The information must include all data that allow quick identification of the transaction. In addition, obliged institutions must notify the GIIF of any suspicion that a money laundering or terrorist financing crime has been committed within 2 days of such suspicion.

Among the main tasks of mandatory institutions, we can thus mention:

drawing up a risk assessment,
creation of an internal AML procedure,
appointment of persons responsible for AML,
training of employees,
as well as keeping a register of suspicious transactions and reporting them to the General Inspector of Financial Information.

Brigham Hill

As Brigham Hill, the creator of Inlogic.eu, my passion for diverse knowledge and sharing it with the world has led me to establish a digital portal that explores a wide range of topics. My background, rooted in an insatiable curiosity about the world, drives the website’s content, from health and beauty, motorization, to legal and even taboo subjects. I believe in the power of education and information, aiming to make it accessible to everyone. My journey into this venture began with a simple desire to create a space where learning and sharing knowledge are valued above all. Through Inlogic.eu, I've strived to connect with like-minded individuals who seek understanding and insights into the various facets of our lives, demonstrating my commitment to a well-informed community.