MIL-OSI Translation: 13/03/2024 KAS will verify due diligence in the international supply chain of “conflict minerals”

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MIL ASI Translation. Region: Polish/Europe –

Fuente: Gobierno de Polonia en poleco.

On December 12, 2024, the Council of Ministers adopted a draft act amending the Act on the National Revenue Administration and certain other acts, submitted by the Minister of Finance. The draft adapts Polish law to EU regulations on obligations to import minerals that come from conflict-affected and high-risk areas. It also contains regulations regarding the strengthening of controls on funds imported into and exported from the European Union. The changes are aimed at preventing money laundering and terrorist financing. “Conflict minerals” “Conflict minerals” include tin, tantalum, tungsten, their ores and gold originating from conflict-affected areas (e.g. war) and high-risk areas (unstable post-conflict areas such as also areas where management and security are weak or non-existent). EU importers of such raw materials have an obligation to exercise due diligence in the supply chain. Responsibilities include: verifying and documenting the origin of imported raw materials and submitting to an audit by an independent entity. Their goal is to prevent negative effects related to the acquisition of such raw materials. More information on this subject can be found at the link: Conflict minerals. According to the adopted draft act, tasks related to ex-post control of imports into the territory of Poland will be assigned to the Head of the National Tax Administration. The draft law specifies the procedure for performing ex-post controls in relation to EU imports of “conflict minerals”, as well as the moment of initiating such controls. Once the inspection authorization is delivered to the inspected company (importer), it will also receive a request to submit documents confirming the fulfillment of due diligence obligations in the supply chain. The solutions included in the Act will contribute to greater financial transparency of transactions involving “conflict minerals”. Cross-border cash flowsCurrently, issues regarding cash flow are regulated, among others, by: the Foreign Exchange Act and the Act on Counteracting Money Laundering and Terrorism Financing. The proposed change is aimed at adapting the provisions of these acts to the provisions of the EU regulation, which comprehensively regulates the issues of control of funds imported into and exported from the European Union. Moreover, in accordance with the adopted draft act, tasks related to, among others: The authorities of the National Tax Administration will be responsible for the control of declarations of funds transported by natural persons, the obligation to disclose funds in transport, verification of declarations or preparation of declarations ex officio, and the provision of information to the Financial Intelligence Unit. Currently, the authority competent to undertake control activities regarding the import and export of cash is the Border Guard. The changes proposed in the draft act in the field of penal and fiscal regulations should have a positive impact on the implementation of the obligation to make reliable reports, and at the same time will ensure effective activities of the Customs and Tax Service in regarding the control of funds transported across the border. The new regulations are to enter into force 14 days after their announcement in the Journal of Laws, with the exception of the amendment to the Foreign Exchange Act (concerning fiscal offenses in the field of currency exchange office activities), which will enter into force after 3 months from the date announcement of the act.

AXLE MIL

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure not be perfect.

MIL Translation OSI