Moneyval Mutual Evaluation Report of Czech Republic

1. Anti-money laundering and counter-terrorist financing measures in Czech Republic: Mutual Evaluation Report – February 2019
Mutual evaluation
report by the
Committee of
Experts on the
Evaluation of Anti-
Money Laundering
Measures and the
Financing of
Terrorism
MONEYVAL 1
Anti-money laundering and counter-
terrorist financing (AML/CFT)
measures in Czech Republic
Fourth Round Mutual Evaluation
Ratings
February 2019
http://www.fatf-gafi.org/publications/mutualevaluations/documents/mer-czech-republic-2018.html

2. Anti-money laundering and counter-terrorist financing measures in Czech Republic: Mutual Evaluation Report – February 2019
Mutual evaluation
report by the
Committee of
Experts on the
Evaluation of Anti-
Money Laundering
Measures and the
Financing of
Terrorism
MONEYVAL
Ratings – Effectiveness (1/3)
2
Immediate outcome of an effective system to combat money
laundering (ML) and terrorist financing (TF)
Extent to
which Czech
Republic has
achieved this
objective
1. ML and TF risks are understood and, where appropriate,
actions co-ordinated domestically to combat ML and TF
Moderate
2. International co-operation delivers appropriate information,
financial intelligence, and evidence, and facilitates action
against criminals and their assets
Substantial
3. Supervisors appropriately supervise, monitor and regulate
financial institutions and designated non-financial
businesses and professions (DNFBPs) for compliance with
AML/CFT requirements commensurate with their risks.
Moderate
4. Financial institutions and DNFBPs adequately apply AML/CFT
preventive measures commensurate with their risks, and
report suspicious transactions.
Moderate

3. Anti-money laundering and counter-terrorist financing measures in Czech Republic: Mutual Evaluation Report – February 2019
Mutual evaluation
report by the
Committee of
Experts on the
Evaluation of Anti-
Money Laundering
Measures and the
Financing of
Terrorism
MONEYVAL 3
Immediate outcome of an effective system to combat money
laundering (ML) and terrorist financing (TF)
Extent to
which Czech
Republic has
achieved this
objective
5. Legal persons and arrangements are prevented from misuse
for money laundering or terrorist financing, and information
on their beneficial ownership is available to competent
authorities without impediments
Moderate
6. Financial intelligence and all other relevant information are
appropriately used by competent authorities for money
laundering and terrorist financing investigations.
Moderate
7. Money laundering offences and activities are investigated
and offenders are prosecuted and subject to effective,
proportionate and dissuasive sanctions
Moderate
8. Proceeds and instrumentalities of crime are confiscated. Substantial
Ratings – Effectiveness (2/3)

4. Anti-money laundering and counter-terrorist financing measures in Czech Republic: Mutual Evaluation Report – February 2019
Mutual evaluation
report by the
Committee of
Experts on the
Evaluation of Anti-
Money Laundering
Measures and the
Financing of
Terrorism
MONEYVAL 4
Immediate outcome of an effective system to combat money
laundering (ML) and terrorist financing (TF)
Extent to
which Czech
Republic has
achieved this
objective
9. Terrorist financing offences and activities are investigated
and persons who finance terrorism are prosecuted and
subject to effective, proportionate and dissuasive sanctions.
Substantial
10. Terrorists, terrorist organisations and terrorist financiers are
prevented from raising, moving and using funds, and from
abusing the non-profit sector.
Moderate
11. Persons and entities involved in the proliferation of weapons
of mass destruction are prevented from raising, moving and
using funds, consistent with the relevant United Nations
Security Council Resolutions.
Moderate
Ratings – Effectiveness (3/3)

5. Anti-money laundering and counter-terrorist financing measures in Czech Republic: Mutual Evaluation Report – February 2019
Mutual evaluation
report by the
Committee of
Experts on the
Evaluation of Anti-
Money Laundering
Measures and the
Financing of
Terrorism
MONEYVAL 5
Ratings – Effectiveness
0
3
8
0
High
Substantial
Moderate
Low

6. 6
Ratings – technical compliance
(1/5)
AML/CFT POLICIES AND COORDINATION
1. Assessing risks & applying a risk-based approach Larg LarLarLar Largely Compliant
2. National cooperation and coordination PartiParParPar Partially Compliant
MONEY LAUNDERING AND CONFISCATION
3. Money laundering offence Larg LarLarLar Largely Compliant
4. Confiscation and provisional measures ComComComCom Compliant
TERRORIST FINANCING AND FINANCING OF PROLIFERATION
5. Terrorist financing offence Larg LarLarLar Largely Compliant
6. Targeted financial sanctions related to terrorism & terrorist
financing PartiParParPar Partially Compliant
7. Targeted financial sanctions related to proliferation PartiParParPar Partially Compliant
8. Non-profit organisations PartiParParPar Partially Compliant

7. 7
Ratings – technical compliance
(2/5)
PREVENTIVE MEASURES
9. Financial institution secrecy laws ComComComCom Compliant
Customer due diligence and record keeping
10. Customer due diligence Larg LarLarLar Largely Compliant
11. Record keeping Larg LarLarLar Largely Compliant
Additional measures for specific customers and activities
12. Politically exposed persons Larg LarLarLar Largely Compliant
13. Correspondent banking PartiParParPar Partially Compliant
14. Money or value transfer services ComComComCom Compliant
15. New technologies Larg LarLarLar Largely Compliant
16. Wire transfers Larg LarLarLar Largely Compliant

8. 8
Ratings – technical compliance
(3/5)
PREVENTIVE MEASURES (continued)
Reliance, Controls and Financial Groups
17. Reliance on third parties Larg LarLarLar Largely Compliant
18. Internal controls and foreign branches and subsidiaries Larg LarLarLar Largely Compliant
19. Higher-risk countries PartiParParPar Partially Compliant
Reporting of suspicious transactions
20. Reporting of suspicious transactions PartiParParPar Partially Compliant
21. Tipping-off and confidentiality PartiParParPar Partially Compliant
Designated non-financial Businesses and Professions (DNFBPs)
22. DNFBPs: Customer due diligence PartiParParPar Partially Compliant
23. DNFBPs: Other measures PartiParParPar Partially Compliant

9. 9
Ratings – technical compliance
(4/5)
TRANSPARENCY AND BENEFICIAL OWNERSHIP OF LEGAL
PERSONS AND ARRANGEMENTS
24. Transparency and beneficial ownership of legal persons Larg LarLarLar Largely Compliant
25. Transparency and beneficial ownership of legal arrangements Larg LarLarLar Largely Compliant
POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES
AND OTHER INSTITUTIONAL MEASURES
Regulation and Supervision
26. Regulation and supervision of financial institutions Larg LarLarLar Largely Compliant
27. Powers of supervisors Larg LarLarLar Largely Compliant
28. Regulation and supervision of DNFBPs Larg LarLarLar Largely Compliant
Operational and Law Enforcement
29. Financial intelligence units Larg LarLarLar Largely Compliant
30. Responsibilities of law enforcement and investigative
authorities Larg LarLarLar Largely Compliant
31. Powers of law enforcement and investigative authorities ComCo Co Com Compliant
32. Cash couriers PartiPa Pa Par Partially Compliant

10. 10
Ratings – technical compliance
(5/5)
POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES
AND OTHER INSTITUTIONAL MEASURES (continued)
General Requirements
33. Statistics PartiParParPar Partially Compliant
34. Guidance and feedback Larg LarLarLar Largely Compliant
Sanctions
35. Sanctions PartiParParPar Partially Compliant
INTERNATIONAL COOPERATION
36. International instruments Larg LarLarLar Largely Compliant
37. Mutual legal assistance Larg LarLarLar Largely Compliant
38. Mutual legal assistance: freezing and confiscation Larg LarLarLar Largely Compliant
39. Extradition Larg LarLarLar Largely Compliant
40. Other forms of international cooperation Larg LarLarLar Largely Compliant

11. Anti-money laundering and counter-terrorist financing measures in Czech Republic: Mutual Evaluation Report – February 2019
Mutual evaluation
report by the
Committee of
Experts on the
Evaluation of Anti-
Money Laundering
Measures and the
Financing of
Terrorism
MONEYVAL 11
Ratings – technical compliance