Providing a headquarters for business to a company from the same capital group and the status of an obligated institution
| DOI | https://doi.org/10.1108/JMLC-09-2021-0104 |
| Published date | 01 November 2021 |
| Date | 01 November 2021 |
| Pages | 757-765 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Paulina Ledwoń |
Providing a headquarters for
business to a company from the
same capital group and the status
of an obligated institution
Paulina Ledwo
n
Cracow University of Economics, Krakow, Poland
Abstract
Purpose –By implementingDirective (EU) 2015/849 of the European Parliamentand of the Council of May
20, 2015, thePolish legislator decided to pass the Act of 1 March2018 on counteracting money laundering and
financing of terrorism (AML).In connection with it, many interpretative doubts have arisen.The purpose of
this paper is to explain one of them, namely, to indicatewhether the provision by a company of a registered
office for economic activity to another company from the same capital group means that the company
granting its headquartershas achieved the status of an obligated institution pursuantto Article 2 section 1
point 16 letterc) of AML.
Design/methodology/approach –This study is based on a grammatical, systemic and functional
interpretation.It is enriched with national and supranational regulations,doctrinal considerations and current
jurisprudence.
Findings –On the basis of the conducted analysis, the author concludes thatproviding a headquarters to
another company from the same capital group may meanmeeting the conditions of an obligated institution
within the meaning of Article 2 section 1 point 16 letterc) of AML and obtaining by the company providing
the registeredoffice the status of an obliged entity.
Originality/value –This paper contributes to the clarification of the AML interpretation problem.
Adopting a similar approach when analysing other obligated institutions may positively influence the
consolidationof the correct interpretation path of AML regulations.
Keywords Business, Headquarters, Act on Counteracting Money Laundering and Financing of Terrorism,
Capital group, Joint-stock company, Obligated institution
Paper type Research paper
1. Introduction
In connection with implementation the Directive (EU) 2015/849 of the European Parliament
and od the Council of 20 May 2015 on the prevention of the use of the financial system for
the purposes of money launderingor terrorist financing, amending Regulation (EU) No 648/
2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of
the European Parliament and of the Council and CommissionDirective 2006/70/EC (further
as: “the Directive”) into the polish law by establishing the Anti-Money Laundering and
Terrorism Financing Act of 1 March 2018 (further as: “AML”) many doubts have arisen
© Paulina Ledwo
n. Published by Emerald Publishing Limited. This is published under the Creative
Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create
derivative works of this article (for both commercial and non-commercial purposes), subject to full
attribution to the original publication and authors. The full terms of this licence may be seen at http://
creativecommons.org/licences/by/4.0/legalcode
Providing a
headquarters
for business
757
Journalof Money Laundering
Control
Vol.25 No. 4, 2022
pp. 757-765
EmeraldPublishing Limited
1368-5201
DOI 10.1108/JMLC-09-2021-0104
The current issue and full text archive of this journal is available on Emerald Insight at:
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