Czech Republic

New Documents

Moneyval: Czech Republic Must Improve Financial Sanctions Regime

The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism published a follow-up report for the Czech Republic, which re-rates the nation on its compliance with Financial Action Task Force Technical Recommendations 13 and 19.

August 26, 2020

Czech National Bank 2019 Annual Report Highlights AML/CTF Reform Efforts

The Czech National Bank published its 2019 annual report, highlighting activities in financial institution supervision, market stability and monetary policy over the past year, including efforts to improve the anti-money laundering and counterterrorist financing regime.

June 5, 2020

Czech FAU Publishes 2019 Annual Report

May 14, 2020

GRECO Publishes Report on Czech Republic’s Implementation of Anti-Corruption Recommendations

March 12, 2020

Czech Ministry of Finance Seeks Comments on Financial Innovation

March 3, 2020

News

Islamic State Used Czech Banks to Buy Drones

Four companies served by banks in the Czech Republic helped form a complex financial chain and corporate front that the globally blacklisted Islamic State group used to acquire unmanned aerial vehicles, more commonly known as drones, from suppliers in East Asia.

July 9, 2020

Weekly Roundup: US Banks Hand Over Trump-Russia Records, Former HSBC Chief Executive Pleads Guilty, and More

Goldman Sachs executives charged in Malaysia, JPMorgan Chase disregarded compliance staff’s warnings on Jeffrey Epstein, and more, in the weekly roundup.

August 9, 2019

Czech AML Regime Still Porous: Moneyval

February 14, 2019

Midweek Roundup: IMF Seeks AML, Anti-Bribery Review of G-7 Nations, Mexico Pledges Stronger Campaign Against Illicit Finance, and More

April 25, 2018

Weekly Roundup: Mueller Investigates Trump Organization, US Officials Blacklist Russians, and More

March 16, 2018

Enforcement Actions

0 Items Found

Key Documents

Czech Republic Releases Updated Law to Prevent Money Laundering, Terrorist Financing

January 1, 2013

Czech Republic Releases CDD Requirements

August 1, 2008

Czech Republic Outlines Obligations for Implementation of International Sanctions

July 1, 2010

Important Facts

  • The U.S. State Department classifies the Czech Republic as a jurisdiction of concern. The country’s central location in Europe and open market economy leave it vulnerable to money laundering. Primary sources of laundered assets include fraud and tax evasion related to diesel and fuel oils, gas, gold and alcohol. “Carousel trading” is popular, which involves the transfer of funds among multiple companies through fictitious invoices, wages and benefit payments. Another common source of illicit funds is online consumer fraud. Virtual currency fraud has also been noted. Organized criminal groups target Czech financial institutions for laundering activity, most commonly through financial transfers. Links between organized crime and money laundering are present in the activities of foreign groups, especially those from the former Soviet republics, the Balkans region and Asia. Banks, investment companies, real estate agencies, currency exchange offices and gaming establishments all launder criminal proceeds. Fraud and tax evasion money is laundered by groups from various European Union states and the Middle East. The Czech Republic is home to a significant black market for tobacco products, as well as pirated products from Asia. Criminal groups use funds from contraband smuggling to purchase real properties, which they use for business activities. There has been an increase in the number of cyber attacks on banking networks recently, according to Czech police. Cases have involved the use of false identities, fake banking websites and other schemes. The government has expressed concern about potential abuse of digital currencies by criminals in connection to tax evasion, money laundering, terrorist financing, and sanctions circumvention.. Development and investment companies, real estate agencies, currency exchange offices, casinos, gaming establishments, antique shops, pawnshops, restaurants, and taxi companies have also been used to launder criminal proceeds.
  • KYC Covered Entities: Banks, currency exchanges, insurance companies, and postal license holders; securities dealers and exchanges; gaming enterprises; attorneys, trusts, and company service providers; realtors, notaries, accountants, tax advisors, and auditors; pawnshops and dealers of precious metals and stones and of secondhand goods, including vehicles
  • STR Covered Entities:  Banks, currency exchanges, insurance companies, and postal license holders; securities dealers and exchanges; gaming enterprises; attorneys, trusts, and company service providers; realtors, notaries, accountants, tax advisors, and auditors; pawnshops and dealers of precious metals and stones and of secondhand goods, including vehicles
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: No
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 148 (2014); Convictions: 20 (2014)
Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 4 High : 0
Largely Compliant : 23 Substantial : 3
Partially Compliant : 13 Moderate : 8
Non-Compliant : 0 Low : 0

BASEL i

Rank : 112/141
Score : 4.29/10

TRANSPARENCY INTERNATIONAL i

Rank : 44/180
Score : 56/100

Tax Justice Network i

Rank : 67/133
Score : 55/100