Financial Crime World

Czech Republic Makes Significant Strides in Combating Money Laundering and Terrorist Financing, MONEYVAL Report Reveals

MONEYVAL’s latest assessment of the Czech Republic’s progress

  • Date: December 8, 2021
  • Location: Strasbourg, France

Czech Republic’s significant progress in combating money laundering and terrorist financing

According to the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL), the Czech Republic has registered impressive progress in enhancing its measures against money laundering and terrorist financing.

Following a 2018 assessment, which highlighted several shortcomings under the enhanced follow-up procedure, MONEYVAL conducted a new assessment. In this report, MONEYVAL reviewed the Czech Republic’s legislative, regulatory, and institutional improvements in various sectors, including:

  1. Sanctioning regime
  2. Non-profit organizations
  3. Reporting obligations
  4. Tipping-off
  5. Compliance of designated non-financial businesses and professions

Upgraded compliance ratings for FATF recommendations

MONEYVAL upgraded the Czech Republic’s compliance ratings for five Financial Action Task Force (FATF) recommendations, as follows:

  1. Five recommendations went from “partially compliant" to “largely compliant."
  2. One recommendation went from “partially compliant" to “compliant."

Despite remarkable progress in addressing most technical compliance gaps, further efforts are required to fully implement international standards.

Current state of FATF AML/CFT recommendations compliance

  • Fully compliant: Six out of 40 FATF recommendations
  • Largely compliant: 29 FATF recommendations
  • Partially compliant: Five FATF recommendations (targeted financial sanctions, virtual assets, cash couriers, and maintenance of statistics)
  • Non-compliant: None

MONEYVAL’s follow-up report: legislative, regulatory, and institutional changes

MONEYVAL’s report examines legislative, regulatory, and institutional changes in the Czech Republic but does not assess their implementation in practice due to procedural limitations. The Czech Republic is expected to provide a progress report to MONEYVAL regarding the implementation of AML/CFT measures within the next year.

[Link to the Report](insert link here)