Czech Republic Making Strides in Combating Financial Crimes: Moneyval Report
The Czech Republic is making significant progress in its fight against financial crimes, according to the latest evaluation report from Moneyval, the Council of Europe’s anti-money laundering and counter-terrorist financing (AML/CFT) body.
Previous Criticisms and Swift Action
In the 2018 report, Moneyval identified several shortcomings in the Czech Republic’s measures against financial crimes. The Czech authorities acted swiftly to address these gaps.
Key Areas of Improvement
The current report, published in 2019, highlights improvements in several key areas, including:
- Sanctioning regime for breaches of preventative measures: The Czech Republic has strengthened its legislative framework in this area.
- Reporting obligations: The country has improved its systems for receiving, processing, and disseminating suspicious transaction reports.
- Supervision of non-profit organizations: The Czech authorities have established a new registration system for non-profit organizations and increased supervision.
- Tipping-off: The country has revised its legislation to facilitate the reporting of suspicious transactions by regulated and obliged entities.
- Compliance of designated non-financial businesses and professions with AML/CFT regulations: The Czech Republic has expanded the scope of supervised entities.
Upgraded Ratings from Moneyval
Based on this assessment, the Czech Republic’s rating in five FATF recommendations was upgraded from “partially compliant” to “largely compliant,” and one FATF recommendation’s rating moved from “partially compliant” to “compliant.”
More Work Needed
Despite notable progress, more work is needed for the Czech Republic to fully adhere to international standards. The country is currently “largely compliant” with thirty-one of the forty FATF recommendations, with minor loopholes remaining for implementation.
FATF’s Guidance on Digitization in Financial Intelligence Units (FIUs)
The Financial Action Task Force (FATF) has recently released guidance for implementing digitization in Financial Intelligence Units (FIUs), an essential step in further refining the Czech Republic’s financial crime prevention strategies.
Continued Efforts Required
Ongoing efforts from the Czech authorities will be crucial in ensuring long-term compliance and maintaining momentum against financial crimes.
The next report on the Czech Republic’s progress is scheduled for release in one year.