The Czech Republic’s AML/CTF supervisors
In the Czech Republic, the primary AML/CTF supervisory authority is the Financial Analytics Office (FAU). The FAU established a supervision division that works closely with the Czech National Bank's supervision division to oversee banks, credit unions, pension funds, investment funds, insurance companies, and all other entities involved in the capital market.
The following authorities are also responsible for ensuring that certain provisions of the AML Act are followed:
How do you comply with AML/CTF regulations in the Czech Republic?
All reporting businesses, individuals, and legal organisations must carry out the core tasks of the AML Act to the maximum extent possible.
Under the Anti-Money Laundering Act, there are almost 40 different categories of reporting entities, including banks, financial institutions, operators of dangerous games, real estate professionals, intermediaries in the sector, notaries, and attorneys.
As a reporting entity, you are subject to the following obligations:
Conduct Customer Due Diligence (CDD).
The incompletion of a transaction in certain circumstances (e.g., when the customer refuses to be identified or that identification cannot be concluded).
Determine the risks that money laundering and terrorism financing pose to your company.
Provide details on any unusual activities, transactions, or clients
Create a set of internal AML guidelines
Provide AML training to the appropriate employees at least once a year
Give the FAU the information it requests regarding clients or business endeavours
The reporting entities are covered by AML regulations in the Czech Republic. People acting as trustees of trusts must keep records of all information and material connected to all business dealings, including those involving the trustee and the settlor or beneficiary, for a minimum of 10 years.
The Czech Republic AML Act was changed in March 2021 to include requirements for those who are buying, selling, or acting as real estate agents.
What are my AML/CTF Reporting obligations?
Reporting entities in the Czech Republic have reporting responsibilities in relation to the cross-border transfer of funds. They must also inform the FAU of any questionable transactions they become aware of.