Fraud and White-Collar Risks for Businesses: Prevention and Response

Fraud in a business context means intentional conduct aimed at obtaining a financial benefit by causing another person or entity to make a disadvantageous disposition of property through misleading them, exploiting an error, or taking advantage of an inability to understand the situation. In Polish criminal law, the core offence is fraud under Article 286 § 1 of the Polish Criminal Code, although commercial misconduct may also involve document offences, managerial abuse, money laundering, tax offences, or procurement-related offences [1].

This is informational material, not legal advice. The assessment of white collar crime Poland business risk always depends on facts, documents, decision-making structures, and the role of specific persons involved.

White collar crime Poland business risk map

For international businesses operating in Poland, white-collar risk usually appears in ordinary commercial processes: contracting, finance, employment, procurement, accounting, logistics, marketing, and dealings with public authorities. The legal exposure may not be limited to one person. A suspected act may trigger internal disciplinary measures, civil claims, regulatory notifications, criminal proceedings, reputational harm, and loss of financing.

Common criminal law risks include:

• Fraud – causing another person to make a disadvantageous disposition of property in order to obtain a financial benefit, Article 286 § 1 of the Criminal Code [1].
• Managerial abuse – causing significant property damage by abusing powers or failing to fulfil duties in dealing with property or business affairs, Article 296 of the Criminal Code [1].
• Credit or subsidy fraud – submitting unreliable documents or false statements to obtain financing, Article 297 of the Criminal Code [1].
• Forgery and false certification – offences involving documents, including Articles 270 and 271 of the Criminal Code [1].
• Money laundering – handling assets derived from criminal activity, Article 299 of the Criminal Code [1].
• Bribery and corruption – including offences connected with public officials and business transactions, depending on the factual situation [1].

Fraud prevention Poland company: controls that matter

Fraud prevention in a Poland company should not be treated as a formal policy exercise. Polish authorities, auditors, banks, and counterparties may expect evidence that the company has real controls, not only written declarations.

An effective compliance program Poland anti-fraud framework should usually include:

• clear division of approval powers for payments, discounts, procurement, and write-offs;
• contract review procedures for high-value or high-risk counterparties;
• beneficial ownership and sanctions screening where legally required or commercially justified;
• employee conflict-of-interest declarations;
• document retention rules for accounting, HR, and corporate approvals;
• whistleblowing channels compliant with the Act on the Protection of Whistleblowers of 14 June 2024, where applicable [5];
• periodic forensic reviews in areas exposed to manipulation, such as procurement, expenses, stock, and intermediaries.

Fact: a policy that is not implemented may have limited defensive value. Opinion: from a risk management perspective, the most persuasive compliance evidence is operational – approvals, logs, training records, audit trails, and documented responses to red flags. Condition: the proper scope depends on the company’s sector, size, transaction model, and exposure to regulated activities.

Corporate criminal liability Poland: company exposure

Corporate criminal liability Poland is governed primarily by the Act on Liability of Collective Entities for Acts Prohibited under Penalty of 28 October 2002 [3]. In general, a collective entity may face liability when a prohibited act committed by a specified natural person brought or could have brought an advantage to that entity, and statutory conditions are met. These conditions require careful analysis and cannot be assumed automatically.

For management boards and investors, the practical risk is broader than statutory fines. A criminal investigation may lead to seizure of documents or devices, questioning of employees, bank account restrictions, termination of contracts, exclusion from tenders, loss of insurance cover, or reputational crisis. In regulated sectors, separate notification duties may also arise under sector-specific laws.

Management duties should also be assessed under the Polish Commercial Companies Code, especially where directors failed to react to clear warning signs, tolerated conflicts of interest, or approved transactions without adequate verification [6]. Civil, corporate, employment, and criminal consequences may overlap.

Internal investigation Poland: how to respond lawfully

An internal investigation Poland should start with preservation of evidence. Relevant emails, accounting files, contracts, access logs, CCTV recordings, payment instructions, and internal approvals should be secured in a manner that protects integrity and chain of custody.

At the same time, the company must respect labour law, privacy, and data protection requirements. Employee monitoring is regulated by Article 22² and Article 22³ of the Polish Labour Code [7]. Personal data processing must have a lawful basis under Article 6 of the GDPR and should follow principles of purpose limitation, data minimisation, and storage limitation [8]. Secret or excessive evidence collection can damage the case and create separate liability.

A structured investigation usually covers:

1. initial legal assessment of allegations and potential offences;
2. evidence preservation and access control;
3. interviews with relevant employees and managers;
4. forensic accounting or IT review where needed;
5. assessment of reporting duties and litigation options;
6. remediation: disciplinary action, contract termination, control improvements, or claims recovery.

Legal privilege and professional secrecy should be considered from the beginning, especially where criminal exposure of management, employees, or the company is possible.

Reporting fraud Poland business: duties and the three exceptions

Reporting fraud Poland business decisions require a distinction between a social duty, a legal duty, and a strategic business decision. Under Article 304 § 1 of the Polish Code of Criminal Procedure, anyone who learns that an offence prosecuted ex officio has been committed has a social duty to notify the prosecutor or Police [2]. This is not the same as a universal criminally sanctioned obligation for every private company in every fraud case.

The three exceptions are: statutory reporting duties, regulated-sector notifications, and contractual or governance escalation duties.

• Statutory reporting duties – Article 240 § 1 of the Criminal Code creates a punishable duty to notify authorities about specifically listed serious offences. Typical business fraud is not automatically included, but the facts may reveal another listed offence [1].
• Regulated-sector notifications – obliged institutions under the Polish AML Act must notify the General Inspector of Financial Information in situations specified in the Act, including suspicions connected with money laundering or terrorist financing, in particular under Article 74 and, for certain transaction-related suspicions, Article 86 [4].
• Contractual or governance escalation duties – shareholders’ agreements, financing documents, insurance policies, public procurement contracts, or internal board rules may require notification to banks, insurers, investors, supervisory boards, or business partners. These are not criminal law duties, but breach may create serious commercial consequences.

Before notifying authorities, the company should avoid two extremes: delaying action until evidence disappears, or submitting accusations based only on unsupported assumptions. A well-prepared notification should separate documents, facts, witness information, estimated loss, and legal classification.

Litigation, reputation, and crisis management

White-collar incidents may become public before the legal position is clear. Communications should therefore distinguish confirmed facts from allegations. Public statements that overreach may create personal rights exposure under Articles 23 and 24 of the Polish Civil Code and, in some cases, defamation risk [9]. Internal announcements should also be proportionate and need-to-know based.

Where assets are at risk, civil remedies may run in parallel with criminal action. Depending on the case, a company may seek payment claims, damages, interim injunctions, termination of contracts, or security over assets. Criminal proceedings may support recovery, but they should not be treated as a substitute for civil strategy.

Lawyersinpoland.com by Kopeć & Zaborowski advises international companies on Polish business crime, investigations, compliance, and crisis response, and businesses facing suspected fraud or white-collar exposure in Poland may contact us for a structured legal assessment.

FAQ – Fraud and White-Collar Risks for Businesses in Poland

1. What is the main fraud offence under Polish law?

The main fraud offence is Article 286 § 1 of the Polish Criminal Code. It concerns causing another person to make a disadvantageous disposition of property in order to obtain a financial benefit by misleading that person, exploiting an error, or exploiting an inability to properly understand the situation.

2. Can a company be liable for fraud committed by an employee?

Potentially yes, but only if statutory conditions are met. Corporate liability is assessed under the Act on Liability of Collective Entities for Acts Prohibited under Penalty. The employee’s role, benefit to the company, internal supervision, and procedural status of the underlying offence are important.

3. Is a private company always required to report suspected fraud in Poland?

No. Article 304 § 1 of the Code of Criminal Procedure creates a social duty to notify authorities about offences prosecuted ex officio. Specific legal duties may arise under separate provisions, including Article 240 § 1 of the Criminal Code or AML regulations, depending on the facts.

4. How should an internal investigation be started?

The first step is evidence preservation. Relevant documents, emails, payment data, access logs, and approvals should be secured lawfully. The company should then define the scope, identify witnesses, assess data protection issues, and evaluate reporting duties.

5. Can employee emails be reviewed during a fraud investigation?

Yes, in certain circumstances, but the review must comply with the Polish Labour Code, GDPR, internal policies, and proportionality requirements. The legality depends on the monitoring rules, purpose, scope, and information previously provided to employees.

6. What should a fraud notification to authorities contain?

It should contain a clear description of facts, supporting documents, identified persons if known, estimated loss, witness information, and an explanation of why the conduct may constitute an offence. Speculation should be separated from verified evidence.

Bibliography

1. Act of 6 June 1997 – Criminal Code, including Articles 240, 270, 271, 286, 296, 297 and 299.
2. Act of 6 June 1997 – Code of Criminal Procedure, including Article 304.
3. Act of 28 October 2002 on Liability of Collective Entities for Acts Prohibited under Penalty.
4. Act of 1 March 2018 on Counteracting Money Laundering and Terrorist Financing, including Articles 74 and 86.
5. Act of 14 June 2024 on the Protection of Whistleblowers.
6. Act of 15 September 2000 – Commercial Companies Code.
7. Act of 26 June 1974 – Labour Code, including Articles 22² and 22³.
8. Regulation (EU) 2016/679 of the European Parliament and of the Council – General Data Protection Regulation, including Article 6.
9. Act of 23 April 1964 – Civil Code, including Articles 23 and 24.