Anti-Money Laundering

Prevention of Money Laundering and Combating the Financing of Terrorism

As part of the fight against the legitimisation of the proceeds of crime and the financing of terrorism, ČSOB has implemented a system of internal principles, procedures and control measures which are legislation-based and are fully compliant with:

  1. Act No. 253/2008 Coll., on selected measures against the legitimisation of the proceeds of crime and financing of terrorism;
  2. Act No. 69/2006 Coll., on Carrying Out of International Sanctions;
  3. CNB Decree No. 67/2018, on certain requirements for the system of internal principles, procedures and control measures against the legitimisation of the proceeds of crime and financing of terrorism.

The aim of these measures is to prevent and detect money laundering and the financing of terrorism.

Certain requirements and rights of the bank stemming from Act No. 253/2008 Coll.

Client identification

We must identify a client when we enter into a business relationship with the client.

In addition, we are obliged to check the validity and completeness of client records and identify the clients in line with §7 par.2 of the Act.

Further, be noticed, that the Bank is entitled to request the ID document in case of any cash transaction realized at cash counters.

Requirements for client identification:

  • natural person – all names, surname, birth identification number (for a person with no birth identification number a date of birth), place of birth, sex, permanent or other residence and citizenship;
  • natural person – entrepreneur: the same details as for a natural person + business name, appendix to the business name or any other identification features, place of business and business identification number;
  • legal person – company name or names (incl. its appendixes or other identification features), company's registered office, business identification number or a business identification number given under foreign law. For individuals acting as statutory bodies or their members, the same details are given as for natural persons.

In addition to identification details, we also find out if the client is a politically exposed person and in the case of legal persons, their ownership structure.

Client Verification

Before executing the specified transactions we are obliged to verify a client in the scope corresponding to the type of client and the intended transaction (Section 9 of the Act):

  • information on the purpose and intended nature of the business relation or transaction;
  • information on and identification of the actual owners of legal persons.

Pursuant to the law on measures against money laundering and financing of terrorism, ČSOB is entitled at any time during its contractual relationship with a client, to ask the client to submit the required documents or information, including proof of the origin of funds remitted to a client´s account, documents providing the client’s solvency and his liabilities or his credibility…”

Verification is always performed with the client’s cooperation and in the method as defined by law. We are obliged to obtain the information necessary to monitor business relationships or reviewing sources of funds.

In subsequent transactions with a duly identified client we use appropriate methods for verifying the client’s identity, for example:

  • guaranteed electronic signature;
  • signature specimen;
  • PIN,
  • identification key.

Rejection of transactions

Section 15 of the Act provides that we have the right to refuse to execute a transaction if:

  • the client refuses the identification process;
  • the client fails to provide the necessary cooperation.

Clients whose information (which we have available) is not fully up-to-date will be asked to add current details. For more information and to change your information, contact staff at your branch of ČSOB.

Basic concepts

Financing of terrorism is considered to be:

  • gathering or providing financial or other assets knowing that such assets will be, in full or in part, used to commit a crime of terror, terrorist attack or a criminal activity intending to facilitate or support such crime or to support an individual or a group of individuals planning such a crime; or
  • acting with the intention to remunerate or compesate a person who has committed an act of terror, terrorist attack or a crime intended to facilitate or support such crime, or collecting assets to pay such remuneration or compensation.

Legitimisation of the proceeds of crime – for the purpose of Act No. 253/2008 Coll. shall mean an activity performed to conceal the illicit origin of proceeds of crime with the intention to present the illicit proceeds as legal income. The above activity may particularly be in the form of:

  • conversion or transfer of assets, knowing that such assets come from criminal proceeds,for the purpose of concealing or disguising the illicit origin of the assets or of assisting a person involved in the commission of such activity to avoid the legal consequences of such conduct;
  • concealment or disguise of the true nature, source, location, disposition, or movement of assets, or change of ownership rights with respect to assets, knowing that such assets derive from crime;
  • acquisition, possession, use or handling of assets knowing that they originate from crime;
  • criminal association or any other type of cooperation serving the purpose of conduct stipulated above

Beneficial owner means

  1. for an entrepreneur:
    • a natural person having real or legal direct or indirect control over the management or operations of such entrepreneur, indirect control shall mean control via other person or persons;
    • a natural person, holding in person or in contract with a business partner or partners more than 25 per cent of the voting rights of such entrepreneur; disposing of voting rights shall mean having an opportunity to vote based on one’s own will regardless of the legal background of such right or an opportunity to influence voting by other person;
    • natural persons acting in concert and holding over 25 per cent of the voting rights of such entrepreneur; or
    • a natural person who is, for other reason, a real recipient of such entrepreneur’s revenue;
  2. for a foundation or a foundation fund:
    • a natural person who is to recieve at least 25 percent of the distributed funds; or
    • a natural person or a group of persons in whose interest a foundation or a foundation fund have been established or whose interests they promote in case the beneficiary of such foundation or a foundation fund has not yet been determined;
  3. for an association under lex specialis 16), an institution, a public service organization or any other similar legal person and for a trusteeship or any other similar legal arrangement under a foreign law, a natural person who:
    • holds over 25 per cent of its voting rights or assets;
    • is a recipient of at least 25 per cent of the distributed assets; or
    • in whose interest they have been established or whose interests they promote, should it yet to be determined who is their future beneficiary.

Politically exposed person (PEP) means:

  1. a natural person in a prominent public position and with nation-wide responsibilities,such as a head of state, a head of government, a minister and deputy or assistant minister, a member of the parliament, a member of a supreme court, a constitutional court or another high-level judicial body, decisions of which are not subject to further appeal, except in exceptional circumstances, a member of a court of auditors or a central bank board, a high-ranking military officer, a member of an administrative, supervisory, or management board of a state-owned business, an ambassador or chargé d’affaires, or a natural person, having similar responsibilities on a Community or international level; all the above for the entire period of the position and for one year after the termination of such position, and provided the person
    • has residence outside the territory of the Czech Republic, or
    • holds such important public position outside the Czech Republic;
  2. a natural person who
    • is the spouse, partner equivalent to the spouse or a parent of the person under point 1);
    • is a son or daughter of a person specified in point 1) or a spouse or a partner of such son or daughter (a son or daughter in law)
    • is a business partner or beneficial owner of the same legal person, a trust or any other business entity under a foreign law, as the person under point 1), or is known to the obligated entity as a person in close business relationship with a person under point 1); or
    • is a business partner or a beneficial owner of the same legal person, a trust or any other business entity under a foreign law known to have been established in benefit of a person under point 1).