strp KYC Procedures in the Czech Republic: Identifying Customers and Preventing Financial Crimes

B-Efekt a.s. (Company Registration Number: 272 45 888, Husitská 853/13, 130 00 Praha) is a financial and tech firm that operates in compliance with the Czech Republic’s Anti-Money Laundering and Counter-Terrorist Financing laws, specifically the act no. 253/2008 Coll. Strict Know Your Customer (KYC) procedures are in place, as detailed below.

Obligation to Identify

Identification of all transaction participants is mandatory under the following scenarios:

1. Before registering a new customer or establishing a business relationship.
2. Before transactions exceeding €1,000.
3. For recurring transactions over €10,000 from already identified customers.
4. When dealing with politically exposed persons (PEPs) or those subject to international sanctions.
5. In cases involving cultural monuments, objects of cultural value, second-hand goods, or goods without proof of acquisition.
6. For life assurance premiums.
7. For transactions with undisclosed amounts.
8. In suspected transactions.

In-person identification or mediated identification via a notary or public administration contact point is required in all cases.

Stages of KYC Procedure

The KYC procedure has 5 main stages:

1. Obtaining customer information: As per the relevant questionnaire.
2. Collecting and verifying documents and evidence: Copies of valid identity documents, proof of address, and other supporting documents.
3. Validating provided information: Screening customers against public registers, credit bureaus, and sanction lists.
4. Compliance and risk evaluation: Based on the company’s guidelines.
5. Continuous monitoring: Keeping the identification data updated throughout the business relationships.

Data Retention

All collected information is stored in the Payment System for a minimum of 10 years.

Identification for Private Customers

During online registration, private customers must provide:

• Detailed personal information
• Copies of identity card
• Supporting documents
• Consent to process personal data

During onboarding, they undergo:

• Two-factor identification processes
  • Using SMS from their mobile number

Identification for Business Customers

Business customers or their authorized representatives must provide:

• Company information
• Details of the statutory body
• Identification of the persons in charge
• Identification of the recipient
• Official authentication of powers of attorney

Transfer of Identification

The company can rely on the identification executed by third parties who comply with the relevant regulations. Similarly, customers can send copies of identity cards and supporting documents to the company for verification.

Politically Exposed Persons (PEPs)

The company identifies and records whether a customer is a PEP through active searches or client statements. If a PEP is detected:

• The company cannot enter into a business contract
• Cannot establish a business relationship

Persons under International Penalties

The company verifies if a customer or related parties are subject to international sanctions by checking against applicable sanctioning lists. In case of a match:

• Funds must be frozen
• A suspicious transaction notification must be filed promptly to the Financial Analysis Authority