Financial Crime World

Czech Republic’s AML/CFT Measures Scrutinized in New MONEYVAL Report

The latest report from the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL), titled MONEYVAL(2018)17, has evaluated the Czech Republic’s efforts to counter money laundering (ML) and terrorism financing (TF). This article outlines the key findings, risks, and technical compliance of the Czech Republic regarding international anti-money laundering and countering the financing of terrorism (AML/CFT) standards.

Progress and Achievements

The report highlights the Czech Republic’s initiatives to prevent ML and TF. Key achievements include:

  • Progress in implementing preventive measures
  • International cooperation, including asset confiscation

However, the evaluation also identifies areas requiring improvement.

areas for improvement

National Risk Assessment (NRA)

According to the report, the Czech Republic’s NRA is transparent and realistic. However, it should be further examined regarding specific aspects, such as:

  • Laundering of foreign proceeds
  • Fictitious entrepreneurships
  • Real estate business
  • Organized crime

Financial Intelligence Unit (FIU)

Although the Financial Analytical Unit (FAU) has contributed to identifying ML and TF risks, the report suggests that:

  • Limited feedback is provided to the FAU on the use of financial intelligence
  • The quality of analysis and prioritization of actions cannot be adequately assessed

legislation and institutional framework

The report recognizes the Czech Republic’s efforts to strengthen its AML/CFT legislation and framework, which include:

  • Legislative reforms
  • Increased focus on ML investigations
  • Introduction of extended confiscation
  • Programs to mitigate FT risks

Key Areas for Improvement

The report recommends the Czech Republic improve its AML/CFT system in the following areas:

  1. Effective use of financial intelligence by LEAs
  2. Development of a strategy to address ML/FT risks
  3. Enhancing cooperation between different authorities
  4. Improving data availability and analysis

Conclusion

In summary, the MONEYVAL report sheds light on the current state of the Czech Republic’s AML/CFT system, highlighting both progress made and areas requiring improvement to strengthen the country’s ability to counter ML and TF threats effectively. The recommendations provided by MONEYVAL focus on risk assessment, cooperation and coordination, customer due diligence, and financial intelligence unit.