The EU’s fourth AML directive on money laundering and terrorist financing is no novelty. The Czech Republic, like other EU members, had to implement it in the legal order by 26.6.2017 at the latest, which also happened.
Tax optimization within the EU
Each member implements the directive in a different way, so it will vary slightly across Europe. The directive’s main purpose is to increase the emphasis on identifying real owners of companies and their records. It also recognizes and assesses the risks associated with money laundering in business, including records of such activities.
The directive in the Czech Republic
In the Czech Republic, the Directive was implemented through Act No. 368/2016 Coll., Which amends Act No. 253/2008 Coll., On certain measures against the legalization of proceeds from crime and the financing of terrorism. The Act was promulgated in the Collection of Laws of 14.11.2016 and entered into force on 01.01.2017 (hereinafter referred to as the “AML Act”).
On the basis of this Act, the Registry of Final Owners was established, which is not public and is kept by its registry courts (regional, in Prague Municipal Court in Prague). Entities required to do so must report to the final owner within 6 months of the effective date of the law. If the entity of such owner (meeting the legal requirements) is not found, the member of the Company’s statutory body will be listed in the register.
Extended obligations under the AML Act
There has also been an increase in the number of people who are required to comply with the obligations laid down by AML by law. This means the need to identify and control the client, to store such data and to observe the reporting obligations). The circle has expanded with investment intermediaries and almost all gambling operators. In addition, persons providing nominees and similar services and, of course, to those who provide services related to kryptomena.
The limit for all cash transactions (which is then covered by the AML obligation) is reduced. From 15,000 EUR to 10,000 EUR. The amendment was canceled by the Financial Analytical Unit (which was a department of the Ministry of Finance). Its competence was taken by the Financial Analysis Office, which is an organizational component of the state. Against his decision no longer will be deferred as yet, but an appeal, which will be decided by the Ministry of Finance of the Czech Republic.