AML Act: New Rules for Accountants in the Czech Republic

The AML Act, also known as the Anti-Money Laundering Act, introduces new obligations for Czech accountants starting in 2025. The compliance deadline is set for 10 March; failure to meet it may result in a substantial fine.

The primary obligation – to register as a contact person with the Financial Analysis Office – had to be fulfilled by 10 March. Additional requirements for obligated persons, including accountants and consultants, are outlined in the Act on Certain Measures to Combat Money Laundering and Terrorist Financing (AML Act).

The Act imposes several obligations on obligated persons. The Financial Analysis Office (FAÚ) is primarily responsible for overseeing compliance, including imposing fines for non-compliance.

However, professional chambers will also play a role in verifying adherence. For tax consultants, this responsibility falls to the Chamber of Tax Consultants of the Czech Republic, while for auditors, it rests with the Chamber of Auditors of the Czech Republic, among others. The law aligns with international standards and EU directives aimed at combating money laundering and terrorist financing.

Terrorist financing occurs when individuals receive or provide money or other assets, knowing they will be used to commit a terrorist act, a terrorist crime, participate in a terrorist group, support or encourage terrorism, threaten to commit a terrorist act, or assist in carrying out such acts.

“Dirty” money refers to funds obtained through illegal activities such as drug trafficking, corruption, extortion, fraud, human trafficking, or theft. Its origin, possession, and use are all unlawful. The process by which criminals attempt to “clean” or conceal the illicit origin of such money is known as money laundering.

Accountants and Consultants: The Main Changes

The law introduces new administrative obligations for financial institutions and defines the concept of “obligated” persons – organizations required to comply with measures against money laundering and terrorist financing. These include credit institutions (banks and credit unions), financial institutions, gambling operators, real estate traders, art dealers, notaries, lawyers, bailiffs, and others.

According to § 2(1)(e) of the law, obligated persons include auditors, tax consultants, and individuals authorized to maintain accounting, financial, and tax records under the Trade Licensing Act. This obligation applies not to employed accountants but to accountants and tax consultants operating as sole proprietors.

It does not matter whether this activity is their primary or secondary occupation.

Obligated persons have several responsibilities under the AML Act, including:

• Customer identification and verification – Verifying customers when establishing business relations by checking their identity using valid identification documents.
• Reporting suspicious transactions – Informing the Financial Analysis Office of transactions exceeding a certain threshold (over 10,000 euros), as well as any suspicious transactions.
• Refusing certain transactions – Declining transactions if the customer refuses to provide the required identification data, does not cooperate with verification, or if there are doubts about the authenticity or completeness of the provided information.
• Implementing internal controls – Developing and enforcing internal policies, strategies, and procedures to effectively manage and mitigate the risks of money laundering and terrorist financing.
• Maintaining confidentiality – Keeping all information obtained in the course of fulfilling AML obligations confidential and not disclosing details about suspicious transactions.
• Appointing a compliance officer – Designating a person responsible for overseeing internal controls and ensuring compliance with AML obligations, as well as conducting regular employee training.

Contact Person for Communication with the FAÚ

One of the primary responsibilities of an obligated person is to appoint a contact person for communication with the FAÚ. For self-employed accountants, this contact person is the accountant themselves.

Starting from 1 February 2025, self-employed individuals must register as the contact person with the FAÚ. The notification must be submitted no later than 3 March 2025. The form can be completed on the FAÚ website and sent via email.

In the event of any changes, the updated notification must be submitted within 15 days.

Contact the specialists at 360WEDO for advice on legislative changes. We will help you navigate all the updates and run your business in the Czech Republic without financial difficulties.

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