Financial Crime World

Komerční banka: Czech Republic’s Leading Financial Institution Ups the Ante in Anti-Money Laundering and Counter-Terrorist Financing Compliance

An In-depth Look at Komerční banka’s Internal Workings and Adherence to Stringent Regulations in the Czech Republic

Komerční banka headquarters are located at Na Příkopě 33, 114 07 Prague, Czech Republic. With over 7,763 employees and 241 branches, this major financial institution offers a comprehensive range of services in corporate, retail, and investment banking, financial leasing, brokerage, and more (www.kb.cz/en/). Komerční banka, known for its commitment to responsibility and legal compliance, strictly follows the anti-money laundering (AML) and counter-terrorist financing (CTF) regulations outlined by the Czech National Bank (CNB) and the European Union (EU).

  • Registered seat: Na Příkopě 33, 114 07 Prague, Czech Republic
  • Legal form: Joint stock company
  • Banking license: Issued by the Czech National Bank since 2003
  • Regulatory body: Czech National Bank (www.cnb.cz/en/)
  • External auditor: Deloitte Audit s.r.o. (www2.deloitte.com/global/en.html)

Komerční banka operates under the Czech Republic’s Act No. 253/2008 Coll. on Selected Measures against the Legalisation of Proceeds of Crime and Financing of Terrorism. This legislation, along with the European Union’s AML Directive, shapes the financial institution’s AML/CTF and Know Your Customer (KYC) policies.

Decree No. 67/2018 Coll. on Certain Requirements for the System of Internal Principles, Procedures, and Control Measures against Money Laundering and Financing of Terrorism further specifies the implementation of these policies.

II. Komerční banka’s Internal Compliance Efforts

In response to recent amendments to the AML Directive (V.AMLD), Komerční banka is dedicated to registering beneficial owners and implementing new registration procedures. The financial institution also strictly adheres to international sanctions aimed at maintaining peace, protecting fundamental human rights, and combating terrorism (Act No. 69/2006 Coll. on Implementation of International Sanctions).

To uphold these regulations, Komerční banka has established a series of internal rules:

  1. Own anti-money laundering and CTF system, following a comprehensive KYC policy.
  2. Identification and updating of clients, including due diligence assessments and risk rating.
  3. Periodic reviews and setting up trigger events.
  4. Reporting of suspicious transactions to respective authorities.
  5. Monitoring and storage of transaction information for up to 10 years.
  6. Training programs on AML, KYC, and related topics for all employees.

III. Komerční banka’s Commitment to FATCA Compliance

As a responsible financial institution, Komerční banka remains steadfast in its commitment to comply with the U.S.’s Foreign Account Tax Compliance Act (FATCA). In accordance with these regulations, the bank is registered as a Reporting Model 1 FFI with a Global Intermediary Identification Number (GIIN) of QQA6ZW.00091.ME.2003. In this capacity, the bank is required to identify and report bank products held by U.S. persons in the Czech Republic.