A significant amendment to the Money Laundering Act
12. December 2016
On October 19, 2016, the Senate of the Parliament of the Czech Republic enacted a significant amendment to Act no. 253/2008 Coll.providing for some measures against the legalization of proceeds of crime and funding terrorism (the so-called Money Laundering Act). The amendment transposes a new EU Directive on the prevention of using the financial system for money laundering and funding terrorism.
The amendment substantially changes the rules of the process of performing mandatory identification and checks of clients of selected entities – the so-called obligated persons, i.e. in particular financial institutions and also auditors, real property dealers and other entrepreneurs.
Due to the adoption of the amendment it will be necessary for the obligated persons to adjust their internal processes regulating measures against the legalization of proceeds of crime and funding of terrorism in order to make them comply with the existing legislation.
The amendment is expected to come into effect at the beginning of 2017.