This publication addresses the risk of holding (potentially conflicting) positions from the perspective of AML/CFT regulations (i.e., those concerning anti-money laundering and countering the financing of terrorism). In English, the author uses the term “double-hatting,” which is difficult to translate into Polish in a way that fully captures the meaning of the term (“double-hatting” refers both to wearing two hats and to holding two positions simultaneously). This issue is analyzed from the perspective of ensuring that the obligated institution operates in compliance with the law, with particular emphasis on ensuring the effective ness and proper management of AML/CFT risks within such an entity. The author examines currently applicable regulations (EU/Polish) as well as so-called “soft law” regulations (codes of good practice, guidelines, etc.). In the latter part of the publication, she will examine the new EU regulations in the area of AML, which will be implemented into the legal systems of the member states. The main issue addressed in this article is the combining of roles in smaller obligated institutions, including sole proprietorships. The issue of combining roles from the perspective of AML/CFT regulations has not yet been the subject of debate. Yet it is significant, particularly when considering the need to ensure that a regulated institution operates in compliance with AML/CFT regulations. As regulations in this area continue to grow, it is unreasonable to expect that a single person will be able to manage—or be responsible for—two distinct areas within a regulated institution. Furthermore, in such a case, there may be a risk of a conflict of interest if the same person were to evaluate their own actions in another area. Effective management of operating costs by regulated institutions should not come at the expense of employing an adequate number of staff. For this reason, the author decided to address this topic and examine the risks from the perspective of regulated institutions.
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