POLAND Law and Practice Contributed by: Jaroslaw Kruk and Joanna Bogdanska, KW Kruk and Partners Law Firm
1.7 Prevention of Defendants Dissipating or Secreting Assets One of the basic methods of preventing the per - petrator of fraud from dispersing or hiding assets in criminal proceedings is to file a motion to block the account that was used to commit the crime and, if the perpetrators can be identified, also other accounts belonging to them. Such a blockade is associated with a ban on making withdrawals, outgoing transfers and other oper - ations involving a reduction in the balance on the above-mentioned accounts. It is best to submit the application immediate - ly – ie, at the very beginning of the proceed - ings, in the notification of a suspected crime. This means that the account may already be blocked when the proceedings are in the in rem phase – ie, despite the fact that the perpetrator has not yet been identified. Criminal proceed - ings also provide for property security, which is a measure aimed at securing a future judgment on the accused’s property if there is a risk that the execution of the judgment will not be possible without security. Both real estate and movable property may be subject to such seizure. As a rule, no fees are paid for activities in crimi - nal proceedings, so the application for blocking accounts is not subject to a fee. Securing Claims in Civil Proceedings In civil proceedings, it is possible to obtain appro - priate security through the court imposing certain restrictions on the defendant or on a participant in the proceedings related to the management of property and the possibility of its disposal. As indicated in 1.3 Claims Against Parties Who Assist or Facilitate Fraudulent Acts , in a situa- tion where the debtor disposes of their assets, the creditor may, after meeting the conditions specified in the regulations, also file an action for
declaring the debtor’s legal transaction to the det - riment of the creditor ineffective; this institution is called the Actio Pauliana. Furthermore, conceal - ing, selling or deleting assets by the debtor is a crime punishable by imprisonment. 2. Procedures and Trials 2.1 Disclosure of Defendants’ Assets Disclosure Procedures Under Polish law, claimants may apply for inter - im asset preservation orders, which can include disclosure obligations. Although there is no stan - dalone statutory “asset disclosure order” , courts may require the defendant to identify assets in support of enforcement or preservation, as fol - lows. • In Polish civil law, asset disclosure from a defendant is typically available after a judge - ment is issued. Before judgment, claimants may apply for interim freezing orders or evidence preservation, although broad pre- action disclosure of assets is not permitted. • In criminal cases, prosecutors and courts have wide powers to obtain information about a suspect’s assets at any stage of proceed - ings. This includes compelling third parties to disclose information, seizing assets and tracing funds held by nominees. • In bankruptcy and restructuring cases, court- appointed administrators can demand com - prehensive asset disclosures from the debtor and third parties. There are also mechanisms to reverse fraudulent transfers and secure hidden assets. Failure to comply with disclosure obligations in civil or insolvency proceedings may result in fines, coercive detention or criminal liability for providing false information. In criminal cases,
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