Financial Crime World

Czech Republic Making Strides in Financial Crime Fight: Moneyval Report

The Czech Republic is making significant progress in its battle against financial crimes, according to the latest report from the European Money Valley (Moneyval). Here’s a breakdown of the key findings.

Previous Weaknesses Addressed

In the 2018 Moneyval evaluation, several weaknesses were identified in the Czech Republic’s financial crime prevention regime. The latest report reveals substantial progress made by the Czech authorities to address these shortcomings.

Improvements in Anti-Money Laundering/Counter-Terrorist Financing (AML/CFT) Regulations

The Moneyval report highlights several improvements in the Czech Republic’s AML/CFT measures:

  • Strengthened sanctioning regime: The Czech Republic has enhanced its penalty system for breaches of AML/CFT preventative measures.
  • Reporting obligations: Improvements have been made in reporting suspicious transactions and notifications of potential money laundering or terrorist financing activities.
  • Handling of non-profit organizations: The Czech authorities have strengthened their oversight and transparency of non-profit organizations.
  • Compliance of designated non-financial businesses and professions: The country’s financial regulatory body, known as ČNB, has ensured that more designated entities are complying with AML/CFT regulations.

Updated Compliance Ratings

Following a thorough evaluation of the Czech Republic’s legislative, regulatory, and institutional measures, Moneyval has updated the country’s compliance rating in the following areas:

  • Five FATF recommendations have been upgraded from “partially compliant” to “largely compliant.”
  • One recommendation now bears the grade of “compliant.”

Ongoing Challenges

Despite these advancements, the Czech Republic still faces challenges to fully adhere to international standards. More efforts are required to close all technical compliance gaps identified in the mutual evaluation.

Fully Compliant with Six FATF Recommendations

The report highlights that the Czech Republic has achieved compliance with six of the 40 FATF recommendations that represent the international AML/CFT standard.

Future Progress Expected

Over the next year, the Czech Republic is expected to demonstrate further progress in these areas and showcase its commitment to upholding international financial crime prevention standards.

To learn more about how the Financial Action Task Force (FATF) is guiding the digitization of financial intelligence units (FIUs) in the fight against money laundering and terrorist financing, read the latest FATF guidance.