Anti-Money Laundering Rules (AML)
1. Opening provisions
In the Czech Republic, the area of money laundering is governed by the Act no. 253/2008 Coll., on certain measures to combat legalization of criminal proceeds and financing of terrorism, as amended (hereinafter the “Act”), as well as decree of the Czech National Bank no. 281/2008 Coll., on certain requirements regarding system of internal principles, procedures and control measures against money laundering and financing terrorism.
The state agency charged with combating money laundering and financing of terrorism is the Czech Financial-Analytical Office of the Ministry of Finance (hereinafter FAO MF), whose principal role is to check notified suspicious deals reported by obligated entities fulfilling their notification duty.
As a Financial Institution with the status of Payment Institution, we have a number of duties deriving from the mentioned legislation. The duties are reflected in our management procedures and the way our Clients’ payment gateways operate. Such duties include especially the duty to identify the Clients and, in certain cases, also Client checks.
2. Identification procedures
We identify our clients by one of the following methods:
a) personally, using ID documents of directors or representatives of a Client
b) remotely, by checking the directors or representatives of a Client by a notary or other authorized institution
c) remotely, based upon sending of a scan of ID document. In such cases, especially where higher payment volumes are concerned, we can add another requirement according to a) or b).
3. Threat prevention
We only send money to a Client’s bank account included in the bank account register maintained by the Ministry of Finance of the Czech Republic.
We check the Client, its directors and de facto directors via the World Check database.
We assess potentially suspicious transactions based upon monitoring according to predefined criteria of behavior and transaction limits. The monitoring is carried out by an analyst of the AML department using the Suspicious Activities Monitoring system (MPA). Any transactions assessed as suspicious by the AML analyst are escalated to AMLO division for final evaluation.
FAO MF may request information regarding transactions subject to notification duty or any transactions investigated by FAO MF. This includes information regarding parties to such transactions. In such case, we provide appropriate assistance and immediately procure all the requested information and/or grant authorized officers of FAO MF access to the relevant documents, always by the deadline requested by the Ministry of Finance.
If we conclude that a transaction is suspicious and immediate compliance with a client’s order might prevent or substantially hinder seizure of criminal proceeds or funds intended to finance terrorism, we are under the obligation to “protect the funds against transfer” and report our findings to FAO MF via suspicious transaction notification (hereinafter “STN”). We must also postpone the processing of the client’s order by 24 hours (the 24 hour period starts from reception of STN by FAO MF).
We must also postpone any suspicious client order by 24 hours if FAO MF orders us to do so. If immediate compliance with a client’s order might prevent or substantially hinder seizure of criminal proceeds or funds intended to finance terrorism, FAO MF orders postponement of processing of the client’s order or freezes the funds (included in the suspicious transaction) for up to 72 hours. In such case, our duty is to extend the retention of the money by the applicable period. If FAO MF reports a suspected crime to the police, we must wait for three days for the decision of the competent law enforcement agency.
Identification information for transactions mandatorily accompanied by identification of the parties, copies of ID documents – if any – information about who, and when identified the client for the first time, documents supporting any exception from the identification and client check duty under Section 13 if the Act, as well as original or authenticated copy of a power of attorney in case of representatives, are safely kept for a period of at least ten years from the end of the business relationship with the client or from the date of the transaction. The mentioned period starts on the first day of the calendar year following the year, in which the last part of the transaction was carried out.
We regularly check whether information on a client’s website is compliant with the information in the agreement. This especially regards name of website and online store brand, Client entity stated on the web, range of goods or services, as well as other information.
These AML rules are valid as of 01/10/2017.