Decree No. 235 / 2021 Coll.
Decree amending Decree No. 67 / 2018 Coll., on certain requirements for the system of internal principles, procedures and control measures against the legalisation of proceeds from crime and terrorist financing
Valid
Order
Effective from 01.07.2021
Text versions:
01.07.2021
17.06.2021
235
DECLARATION
of 11 June 2021
amending Decree No 67 / 2018 Coll., on certain requirements for the system of internal principles, procedures and control measures against the legalisation of proceeds from crime and terrorist financing
The Czech National Bank provides pursuant to § 21 paragraph 11 of Act No. 253 / 2008 Coll., on certain measures against the legalisation of proceeds from crime and terrorist financing, as amended by Act No. 368 / 2016 Coll. and Act No. 527 / 2020 Coll.:
Decree No. 67 / 2018 Coll., on certain requirements for the system of internal principles, procedures and control measures against the legalisation of proceeds from crime and terrorist financing, is amended as follows:
1. In Article 2 (3), the words "and control 'are inserted after the word" identification' and the words "and customer checks' are added at the end of the text of the paragraph.
2. in Article 3 (1) (b), the following point 2 is inserted after point 1:
"2. the natural persons in business, the State referred to in point 1, and at the same time the State in which they have their registered office, if known to the institution, '.
Points 2 and 3 shall become points 3 and 4.
3. in Article 3 (1) (b) (4), the words "or establishment" shall be inserted after the words "my branch."
4. In Article 3 (1), at the end of point (b), the word "a 'is deleted and the following point 5 is added:
"5th Trust Fund, the State under whose law the Trust Fund is established, and each State whose trust manager or person is a national or has its registered office, and, where known to the institution, any other State in which it is registered for more than 1 year or for permanent residence; and ';
5. in Article 3 (1) (c) (1), the words "data on beneficial owners" shall be replaced by "actual owners."
6. In Article 3 (1) (c), the words "at the end of the text of point 3 shall be added; the affidavit in itself cannot be regarded as a reliable source for the purpose of identifying the beneficial owner and the ownership and management structure '.
7. In Article 3 (2), the words "paragraph 3 and 'and the words" or other legal arrangement without legal personality' shall be replaced by the words "to which those provisions apply mutatis mutandis';
8. In Section 4, at the end of the text of paragraph 4, the words "and have always taken into account the products and services offered by the institution before they are placed on the market and the technology before the institution starts using them 'are added.
9. In Article 4 (5) (c), the word "or 'is deleted.
10. In Article 4, at the end of paragraph 5, the dot is replaced by "or 'and the following point (e) is added:
"(e) information on the change in the national risk assessment under Section 30a of the Act."
11. in Article 4, the following paragraph 7 is added:
"(7) Where justified, the institution shall also update client risk profiles following the update referred to in paragraphs 4 and 5 within a period appropriate to their risk profile. ';
12. in Article 5 (3) (e), the words "accepted and" shall be inserted after the words "institution."
13. in Article 5, the following paragraph 4 is inserted after paragraph 3:
"(4) Institutions shall take into account other measures, specific risks and specific factors not referred to in Article 5 (3) in so far as they result from the specific nature of their activities."
Paragraph 4 shall become paragraph 5.
14. in Article 7 (2), the words "and the country of origin of the person in whom such a client has direct or indirect participation" shall be added at the end of the text in point (b).
15. in Article 7 (2) (c), the words "and the person who is in the client's management structure pursuant to the second sentence of Article 11 (4)" shall be inserted after the words "the status of a member of the statutory body."
16. in Article 7 (2), the following point (d) is inserted after point (c):
"(d) the country in which the branch or establishment has a client who is a legal person subject to obligations under § 24a of the Act or equivalent obligations under the law of another State;"
Points (d) to (n) shall be renumbered as points (e) to (o).
17. in Article 7, at the end of paragraph 2, the dot is replaced by a comma and the following points (p) and (q) are added:
"(p) how the first client identification is carried out,
(q) the method of identification and verification of the client's ownership and management structure, which is a legal person. ';
18. In Article 9 (1), the words "identification and 'shall be inserted after the words" reinforced'.
19. in Article 9 (2) of the Introductory Part of the Provisions, the words "identification a" shall be inserted after the word "Reinforced."
20. In Paragraph 9 (2), the words "about the client, in particular information about its beneficial owner, the ownership and management structure of the client, which is a legal person, the nature of the business relationship, the business or the source of funds," shall be added at the end of the text of point (b).
21. in Paragraph 9 (3) (b):
"(b) the client, the person authorised to act as a client with the institution, the actual owner of the client, the person in the ownership and management structure of the client who is a legal person, or, where such persons or the owner of the institution are known, the person with whom the client is engaged, the natural person for whom the transaction is being conducted, or the actual owner of the person with whom the client is being traded, shall be entered in the list of persons, bodies or organised groups to whom restrictive or other measures are applied in accordance with other legislation serving to implement international sanctions (8)."
22. In Article 9, at the end of paragraph 3, the dot is replaced by a comma and the following points (e) to (g) are added:
"(e) the client is not the natural person for which the transaction is conducted;
(f) the client who is a legal person does not, as far as the institution is aware, perform any economic activity;
(g) the suspicion that the beneficial owner of a client who is a legal person is obscured as a result of a contract between the beneficial owner and the person acting as a member, a member of the statutory body or a person in a similar position as a member of the statutory body. ";
23. in Paragraph 9 (4) of the introductory part of the provision, the words "identification and" shall be inserted after the word "reinforced."
24. in Paragraph 9 (4), the words "or unusual behaviour of a client that does not correspond to the current course of a business relationship" shall be added at the end of the text in point (c).
25. in Article 9, at the end of paragraph 4, the dot is replaced by a comma and the following points (d) and (e) are added:
"(d) the information at the disposal of the institution indicates that the client has acted illegally in the last 5 years where the proceeds of crime or terrorist financing may have been legalised by such an infringement or concerns about the subsequent legalisation of the proceeds of crime or terrorist financing are associated with such an infringement; in particular, where such infringements associated with the fear of legalising the proceeds of crime or terrorist financing are listed in the national risk assessment;
(e) the first identification of the client has taken place in accordance with Article 11 (7) of the Act or in a similar manner under foreign law, unless the client uses a product with a potentially lower risk of abuse for the legalisation of proceeds from crime or terrorist financing in accordance with the risk assessment under Article 21a of the Act or uses a service with a potentially lower risk of abuse for the legalisation of proceeds from crime or terrorist financing in accordance with the risk assessment under Article 21a of the Act. "
26. In the first sentence of Paragraph 9 (5), the words "or conduct 'shall be inserted after the words" trading method' and the words "and behaviour 'shall be added at the end of the text of the second sentence.
27. in Article 9 (6), the words "identification a" shall be inserted after the word "reinforced."
28. In Paragraph 10 (1), the word "completeness' shall be inserted after the word" truth '.
29. In Paragraph 11, at the end of paragraph 4, the sentence "If, in accordance with the sentence of the first member of its statutory body or in a similar position as a member of the statutory body, a legal person is also added, the institution shall always identify all persons who are members of the statutory body or in a similar position as a member of the statutory body of that legal entity. '.
30. Paragraph 11 (5) reads:
"(5) In order to understand the ownership structure of a client who is a legal person, the institution shall identify the beneficial owner and assess the ownership structure. ';
31. In Paragraph 15 (1), at the end of the first sentence, the words "which comply with the law of the Czech Republic" shall be added.
32. In Article 15, the following paragraph 3 is added:
"(3) The institution that is part of the group shall take into account:
(a) within the framework of group-based strategies and procedures for sharing information, at least information on reported suspicious transactions, refusal of trade, establishment of a business relationship with a client or termination of an existing business relationship due to the risk of legalisation of proceeds from crime or terrorist financing and information affecting the client's risk profile; and
(b) information obtained from intra-group sharing in the client risk profile; taking into account the specific risks of the products and services it offers. ';
33. In Article 16, at the end of paragraph 2, the dot is replaced by a comma and the following point (d) is added:
"(d) the procedures for the selection and assignment of a member of a statutory body under Article 22a of the Act and the scope of his duties and powers in the performance of the obligations arising under the law and this Decree; where justified by the scope and nature of the activity, institutions shall ensure functional and efficient separation of incompatible functions in the selection and mandate procedures. ';
34. After Article 17, the following paragraphs 17a and 17b are inserted:
Time limit for investigation
In its internal rules, an institution shall set a reasonable time limit for investigating possible suspected legalisation of proceeds from crime or terrorist financing in order to be able to effectively fulfil its obligations to prevent the legalisation of proceeds from crime and to finance terrorism. The institution shall calculate this period from the moment it has obtained information on the conduct of the client's business or conduct that gives rise to a possible suspicion of legalisation of the proceeds of crime or terrorist financing.
Technical equipment
Institutions shall define in their internal rules the technical equipment to the extent necessary for the effective, proportionate and timely execution of the procedures set out in the internal principles system. ';
35. in Paragraph 18 (1), the words "client identification and control" shall be inserted after the word "process."
36. In Article 18 (2), the words "and acts' shall be inserted after the words" identification and 'and, at the end of the text of the paragraph, the words' and information on the measures applied to the client on the basis of his risk profile shall be added. In the context of the information storage system, the institution shall ensure the reconstructionability of the compilation, evaluation and updating of the client risk profile. "
37. In Article 18, the following paragraph 3 is added:
"(3) The institution shall ensure that the retrofitting referred to in paragraph 1 is carried out in such a way that it keeps records in such a way as to enable, where necessary, the specific persons concerned to identify the actions and findings made in the context of client identification, when and when the action or findings have been carried out by the institution, and with what result, on the basis of which supporting documents and reasons, and when and by whom the underlying or data have been entered in the documentation held in relation to the client. ';
38. In Paragraph 19 (1), the word "whether 'is replaced by" the following:';
39. in Paragraph 19 (1), the word "if" shall be inserted at the beginning of point (a) and at the end of the text "and" if "shall be deleted.
40. in Paragraph 19 (1), the word "if" shall be added to the beginning of point (b).
41. In Paragraph 19, the dot is replaced by a comma at the end of paragraph 1 and the following points (c) and (d) are added:
"(c) the measures taken by the institution to eliminate or mitigate the risks referred to in (b); and
(d) the identification and follow-up of internal audit, statutory audit or other equivalent verification where such audit or other verification has been carried out during the period. "
42. In Paragraph 19 (2), the sentence "The assessment report shall always be approved by at least the authorised person in accordance with Section 22a of the Act."
43. In Article 19, at the end of paragraph 3, the sentence "The institution shall include in the assessment report an evaluation of the information on the use of submitted notifications of suspicious transactions received from the Financial Analysis Office."
Transitional provision
An institution shall update the risk profile of existing clients within a period reflecting the client risk profile. The institution shall update the risk profile of existing clients within one year from the date of entry into force of this decree in relation to the risk factors referred to in Article 9 (3) (f) and (g).
Efficacy
This Decision shall enter into force on 1 July 2021.
Governor:
Ing. Rusnok v. r.
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Regulation Information
| Citation | Decree No. 235 / 2021 Coll., amending Decree No. 67 / 2018 Coll., on certain requirements for the system of internal principles, procedures and control measures against the legalisation of proceeds from crime and terrorist financing |
|---|---|
| Regulation Type | Order |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 17.06.2021 |
|---|---|
| Effective from | 01.07.2021 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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