Financial Crime World

Title: MONEYVAL Report: Czech Republic Making Progress Against Money Laundering, but More Work Needed

Strasbourg - Assessment of Czech Republic’s AML/CFT System by MONEYVAL

MONEYVAL, the Council of Europe’s anti-money laundering watchdog, has published a report assessing the Czech Republic’s efforts to combat money laundering and terrorist financing. The experts acknowledged some improvements but called for more intensive efforts, particularly in investigating serious cases.

Risks and Mitigation Strategies

  • Identified Risks: Money laundering through tax crimes, fraud, corruption, phishing, and subvention frauds.
  • Thorough Risk Assessment: Praise for the Czech Republic’s assessment but call for more explicit mitigation strategies in certain areas.

Awareness and Supervision

  • Banks and Financial Institutions: Understand financial risks but awareness in other sectors, such as designated non-financial businesses and professions, is lacking.
  • Limited Resources: Concerns over the financial sector supervision model, led by the Financial Analytical Unit and National Bank.

Progress and Recommendations

  • Legislative Reforms and Investigative Activities: Commendation for recent reforms and increased investigative activities in large-scale money laundering cases.
  • Exploring More Opportunities: Emphasis on exploring more investigative opportunities, especially in dealing with third party and standalone money laundering.

Assets Seizure and Confiscation

  • Improvements in Legislation and Institutions: Significant improvements in the legislative and institutional framework for asset seizure and confiscation.
  • Action Required Against Terrorist Financing: Additional action required in relation to terrorism offenses, despite the identification of potential scenarios.

Data Concerns and Cooperation

  • Publicly Accessible Czech Commercial Register: Concerns over the inconsistency and accuracy of Czech Commercial Register data.
  • Trust and Beneficial Ownership Registers: Progress in establishment, but they are yet to be fully populated.
  • Cooperation with Foreign Counterparts: Czech authorities’ cooperation with foreign counterparts and the use of international cooperation acknowledged.

Next Report in Mid-2020

MONEYVAL expects the Czech Republic to report back on the implementation of its recommendations in mid-2020.