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Set of internal AML policies

Czech Republic: Obligated persons may make use of a template set of internal policies

In its Section 2, the "Act on certain measures to prevent the legitimization of proceeds of crime and the financing of terrorism" (more commonly known as Anti-Money Laundering Act), which is an important weapon in the arsenal used to fight money laundering, imposes a number of duties on what is known as "obligated persons".

One of these duties is to implement and enforce adequate procedures for internal control and communication, and to create a system of internal policies, procedures, and measures in this respect.

The Anti-Money Laundering Act does provide an overview of what elements ought to be commonly included in the internal policy system (Sec. 21 (5)). Even so, preparing and setting up such a system of internal policies may in practice cause more or less substantial problems. For this reason, it is a welcome development that the financial-analytical unit (FAÚ) at the Czech finance ministry has been thoughtful enough to issue a template system of internal policies, procedures, and controlling measures which obligated persons may freely draw upon and use as their starting point when creating their own documentation.

The ministry's template system of internal policies, procedures, and controlling measures comprises altogether 21 articles which contain, among other things, a detailed (if non-exhaustive) list of (both facultative and obligatory) characteristics of suspicious transactions; rules for the proper identification and screening of clients (including measures aimed at the identification of politically exposed persons and subjects); adequate and suitable methods and procedures for risk assessment, risk management, and internal control; guidance as to how to proceed upon taking notice of a suspicious transaction and when reporting the same to the FAÚ; but also e.g. technical and personnel-related measures that ensure proper procedure when delaying the performance of client instructions.

The template system of internal policies was published on the finance ministry's website on 24 April 2015 and may be accessed using the following link: http://www.mfcr.cz/cs/verejny-sektor/regulace/boj-proti-prani-penez-a-financovani-tero/system-vnitrnich-zasad-a-kontaktni-osoba.

Source: Act No. 253/2008 Coll., on certain measures to prevent the legitimization of proceeds of crime and the financing of terrorism, as amended