Financial Crime World

Title: Czech Republic Faces Calls for Increased Action Against Money Laundering: MONEYVAL Report Reveals Room for Improvement

Strasbourg, February 11, 2019 - Assessing Money Laundering and Terrorist Financing in the Czech Republic

According to the latest report by the Council of Europe’s anti-money laundering body, MONEYVAL, Czech authorities must take a more proactive approach in investigating money laundering (ML) cases, despite progress achieved in recent years. Here’s a breakdown of the report and its implications.

MONEYVAL’s Recommendations: Proactive Approach and Priority on ML Investigations

  • Wide-ranging assessment: Effectiveness of the Czech Republic’s ML/FT system, FATF compliance.
  • Progress acknowledged but…: ML risk analysis, awareness, need for more proactive ML probes.

Origins of Money Laundering and Terrorist Financing

  • Primary sources: Tax crimes, fraud, corruption, phishing, subvention frauds.
  • Limited occurrences: FT, but focus should not be ignored.

Concerns in the Financial Sector

  • Banks aware but others lag: ML/FT risks recognized, awareness lacking among others.
  • Inefficiency concerns: Supervisory model, limited resources.

Czech Authorities Encouraged to Increase ML Probes

  • Complex judicial processes: Sanctions for multiple offenses complicate assessments.
  • Progress in confiscation and seizure: Effective investigations, positive response to risks.

Challenges in Data Access

  • Record quality and accuracy: Varying levels in the Czech Republic’s Commercial Register.
  • Developing beneficial ownership registers: Data population ongoing.

International Cooperation

  • Noteworthy efforts: Mutual legal assistance and other forms of collaboration.

MONEYVAL’s Report and Next Steps

  • Enhanced follow-up procedure: Czech Republic requested to present a progress report in mid-2020.

With these areas for improvement in mind, the Czech Republic continues its quest to strengthen its anti-money laundering and terrorist financing measures. Stay tuned for further updates.

Money Laundering Origins and Terrorist Financing in the Czech Republic: Highlights from the MONEYVAL Report

  1. Proactive Approach and Priorities: MONEYVAL emphasizes the importance of a more pronounced focus on money laundering investigations.
  2. Money Laundering Origins: Predominantly derived from tax crimes, fraud, corruption, phishing, and subvention frauds.
  3. Terrorist Financing: Occurrences are limited but should not be overlooked.
  4. Financial Sector Awareness: Banks have a solid understanding of ML/FT risks, but fewer financial institutions and DNFBPs follow suit.
  5. Regulatory Efficiency: Concerns regarding the efficiency of the Financial Analytical Unit and National Bank.
  6. Impact of Sentencing: Justice system complications in assessing the impact of sentences on ML.
  7. Effective Investigations: Positive signs: confiscation and seizure procedures, tackling FT.
  8. Data Access and Registration: Mixed record quality, evolving beneficial ownership registers.
  9. International Collaboration: Notable efforts through mutual legal assistance and other collaborations.
  10. Progress and Next Steps: MONEYVAL’s enhanced follow-up procedure sets the stage for a progress report in mid-2020.