Financial Crime World

Czech Republic Making Strides in Financial Crime Prevention: Moneyval Report

The Czech Republic has shown significant progress in strengthening its financial crime prevention measures, as acknowledged in the latest evaluation report from Moneyval.

Moneyval Recognizes Improvements

The European Union’s anti-money laundering and counter-terrorist financing body commended the country’s efforts and improvements in the following areas:

  • Sansioning regime for breaches
  • Reporting obligation
  • Non-profit organizations
  • Tipping-off
  • Compliance with AML and CFT obligations for designated non-financial businesses and professions

Previous Shortcomings Addressed

In Moneyval’s 2018 report, several shortcomings were identified in the Czech Republic’s financial crime prevention measures. The new report indicates the country’s response and progress in addressing these issues.

Updated Compliance Ratings

According to Moneyval’s inspection, the following ratings for FATF recommendations have been changed:

  • Five recommendations are now rated “largely compliant” (previously “partially compliant”)
  • One recommendation holds a “compliant” rating

Areas for Further Improvement

Despite significant strides in addressing the technical compliance gaps, more work is needed for the Czech Republic to fully adhere to international standards. Currently, the country is compliant with six out of the 40 FATF recommendations, with minor gaps in the implementation of 29 recommendations (rated “largely compliant”).

Expectations for Future Progress

The report sets expectations for further progress in the next year, as the Czech authorities continue their efforts to meet international requirements and fully address the remaining gaps.

Impact of FATF’s Guidance for FIUs

Additionally, the Financial Action Task Force (FATF) has issued guidance for the digitization of financial intelligence units (FIUs), which could potentially impact the Czech Republic’s efforts in financial crime prevention. Upcoming developments in this area will be important to monitor. Stay tuned for updates on their progress.