Czech Republic

Global sanctions guide

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  1. Does the Czech Republic have a sanctions regime in place?

Yes.

  1. Does the Czech Republic implement UN sanctions?

Yes.

  1. Does the Czech Republic implement an autonomous sanctions regime?

Yes, Sanctions Committee decisions, as long as they do not fall within the EC/EU competence, are incorporated in domestic law by means of Government Decree adopted by the Czech Government on the basis of Act No. 69/2006 Coll., on the implementation of international sanctions. Certain restrictive measures, specifically embargoes relating to military goods, may be implemented via individual administrative acts adopted by Czech authorities within the limits of their discretion set up by legislative act (eg the decision on refraining from the issuing of export/import license with military material or on repeal of the issued export/import license with military material).

  1. What is the nature of the sanctions regime in the Czech Republic?

The Financial Analytical Office (“FAO”) is responsible for the coordination of the implementation of restrictive measures at the national level. Depending on the type of restrictive measure other ministries and government agencies participate in their sphere of action. EU Regulations are directly applicable and have direct effect in the member states.

They are applied and enforced by the competent authorities of the member states and the Commission. No further legislative action of the member states is required to transpose them.

Restrictive measures, which fall within member states’ competence, are implemented in the Czech Republic by means of Act No. 69/2006 Coll., on the implementation of international sanctions. If the sanction does not follow from the directly applicable act of the EU, it should be declared by the Government of the Czech Republic through a Government Decree. FAO is entitled (under the condition that it is allowed by the resolutions of the UNSC or EU Council imposing international sanctions) to grant an exemption from the bans and restrictions for certain reasons stipulated by the Act No. 69/2006 Coll.

Moreover, the EU 3rd and 4th Anti-Money Laundering Directive was implemented in the Czech Republic by Act no. 253/2008 Coll. on certain measures against money laundering and financing of terrorism (“AML Act”). The AML Act stipulates the obligations relating to the prevention and detection of the use of the financial system for the purpose of money laundering and terrorist financing.

  1. Does the Czech Republic maintain a list of sanctioned individuals and entities?

It follows the UN and EU lists.

  1. Are there any other lists related to sanctions?

No.

  1. Does the Czech Republic have a licensing or authorisation system in place?

Yes, in terms of trade sanctions the relevant government body is the Ministry of Industry and Trade. Traders in military material have to apply for an import or export license for every single contract whose object is military material. The decision on granting of the import/export license is issued by the Ministry of Industry and Trade based on the binding statements provided by the Ministry of foreign affairs, Ministry of Interior and Ministry of Defence.

  1. What are the consequences for a breach of sanctions in the Czech Republic?

For breaching international sanctions the penalties according to Act No. 69/2006 Coll., on the implementation of international sanctions which can be imposed are a fine of up to Czech Koruna (“CZK”) 4.000.000. If the sanction is infringed by a legal person or a natural person that is an entrepreneur and the damage caused exceeded the amount of CZK 5.000.000, or if they have obtained for herself/himself or a third party a benefit exceeding the amount of CZK 5.000.000, then a penalty of up to CZK 50.000.000 can be imposed.

In certain cases a breach of sanctions can be considered as a criminal offence. If FAO finds out facts indicating a reasonable suspicion that a criminal offence has been committed, it should inform the Police and should provide the police with the necessary evidence.

  1. Who are the relevant regulators in the Czech Republic and what are their contact details?

Coordination of the implementation of international sanctions is as of 1 January 2017 provided by the Financial Analytical Office (“FAO”) of the Czech Republic at the national level.

Financial Analytical Office
Financial Analytical Office P.O. BOX 675
Jindrišsk. 14
111 21, Prague 1
Czech Republic

T: (+420) 257 044 501 or (+420) 603 587 663 outside of the office hours
F: (+420) 257 044 502
E: fau@mfcr.cz


Central authority for AML reporting
The Central authority for AML reporting serves the FAO.

AML regulator(s)

  • Financial Analytical Office
  • Czech National Bank
  • Czech Bar Association

Contributor law firm

Henrieta Hovanová, DELTA legal, advokátní kancelář s.r.o, Krakovská 1392/7, 110 00, Prague 1, Czech Republic