Functioning of the register of beneficial owners: findings from Poland
| Date | 28 November 2023 |
| Pages | 932-943 |
| DOI | https://doi.org/10.1108/JMLC-09-2023-0149 |
| Published date | 28 November 2023 |
| Author | Tomasz Michał Matras |
Functioning of the register of
beneficial owners: findings
from Poland
Tomasz MichałMatras
Faculty of Social Sciences, University of Wrocław, Wrocław, Poland
Abstract
Purpose –The implementationof the Directive 2015/849 of the European Parliament and of the Councilof
20 May 2015 on the prevention of the use of the financial system for the purposes of money launderingor
terrorist financing resulted in the enactment by the Polish Parliament of the Act of March 1, 2018, on the
preventionof money laundering and terrorist financing. One of the mostimportant issues identified in the Act
was the establishmentof the Central Register of Beneficial Owners. The purpose of this paperisto critically
analyze the functioning of the Registerin Poland from the perspective of three years since its establishment.
The text presents the most importantproblems faced by reporting institutions and obliged entities due to
discrepanciesin the interpretation of the Act’s provisions –especially in termsof the definition of a beneficial
owner.
Design/methodology/approach –The basic research approach was a comparative content analysis
method. The objects of analysis includedPolish Laws, Directive of the European Parliament and the Council
(EU) 2015/849 and the judgment of the Court of Justice of the European Union. The theoretical legislative
assumptions contained in the Acts were compared with reports, studies and communications prepared by
public and private institutions.This made it possible to draw conclusions regarding the causes of problems
with the functioningof the Register in Poland.
Findings –The results of the research showed that the ambiguityof the definition of the beneficial owner
leads to a number of problems on the part of reporting institutions, such as companies, foundations and
associations. On the other hand, a large part of the data entered in the Register is questioned by obliged
entities. The lack of personal data protection is also a problem.Consequently, this reduces the value of the
Registeras a tool that effectively mitigates the risk of money laundering.
Research limitations/implications –The research focused only on the functioning of the Central
Register of BeneficialOwners in Poland. The subject of theanalysis addressed problems with the definitionof
beneficial owner, issues of data quality and openness and the process of verifying the Register’s data. The
technicalaspects of the Register operation and the financial penalties imposed by publicoversight institutions
were not reviewed.Also, no comparison was made with other European Union (EU)member states that have
implementedDirective of the European Parliament and of the Council (EU) 2015/849.
Originality/value –This study discusses the important issue of regulatory requirements introduced
under EU regulations for privatecompanies. Familiarization of companies, NGOs and obligedentities with
the conclusions of the study can positively influence the consolidation of the correct interpretative path. In
addition, to the best of the author’s knowledge,this is the first scientific text that identifies and systematizes
the most importantproblems of the Register’s functioning in Poland.
Keywords Anti-money laundering, Beneficial owners, Central register of beneficial owners,
Act on counteracting money laundering and financing of terrorism, Obliged entities,
Reporting institutions
Paper type Research paper
1. Introduction
The establishment of the Central Registerof Beneficial Owners (further as: CRBO) in Poland
was a fulfillment of Directive (EU) 2015/849ofthe European Parliament and of the Council
JMLC
27,5
932
Journalof Money Laundering
Control
Vol.27 No. 5, 2024
pp. 932-943
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-09-2023-0149
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1368-5201.htm
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