1. Does the Czech Republic have a sanctions regime in place?
2. Does the Czech Republic implement UN sanctions?
3. Does the Czech Republic implement an autonomous sanctions regime?
Yes, autonomous sanctions can be implemented if they do not fall within the competence of EU or the UN does not issue any sanctions. These sanctions can be implemented in a form of a Government Decree and must be issued in cooperation with the Financial Analytical Office (“FAO”). FAO is also entitled (under the condition that it is allowed by the resolutions of the United Nations Sanctions Council (“UNSC”) or EU Council imposing international sanctions) to grant an exemption from the bans and restrictions for certain statutory reasons.
4. What is the nature of the sanctions regime in the Czech Republic?
Czech Republic as a member state of the EU and the UNSC applies the international restrictions issued by EU and UN. The FAO is responsible for the coordination of the implementation of restrictive measures at the national level, other ministries and government agencies can participate in their sectors. On 21 January 2020, the Interdepartmental coordination group for implementation of international sanctions in the Czech Republic was founded. It has a status of an advisory and coordinating body. EU Regulations are directly applicable and have direct effect in all the member states and this is fully recognized in the Czech Republic and the national legislation corresponds to this rule. No further legislative action is required to transpose them.
Restrictive measures, which must be implemented, are implemented in the Czech Republic by means of Act No. 69/2006 Coll., on the implementation of international sanctions (“Sanction Act”).
Moreover, the EU 3rd and 4th Anti-Money Laundering Directives (“AMLD”) were 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. The 5th Anti-Money Laundering Directive has not been implemented yet despite the lapse of the transposition period, as the adoption of the amendment in question raised political controversies because of exemptions proposed by the government.
5. Does the Czech Republic maintain a list of sanctioned individuals and entities?
It follows the UN and EU lists.
6. Are there any other lists related to sanctions?
7. Does the Czech Republic have a licensing or authorization 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.
8. What are the consequences for a breach of sanctions in the Czech Republic?
The penalties, which can be imposed according to the Sanction Act for breaching sanctions, are from CZK 200.000 up to 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 a benefit exceeded CZK 5.000.000, then a penalty up to CZK 50.000.000 can be imposed.
In certain cases, a breach of sanctions can be considered as a criminal offense. If FAO finds out facts indicating a reasonable suspicion that a criminal offense has been committed, it should inform the Police and should provide the police with the necessary evidence.
9. Who are the relevant regulators in the Czech Republic and what are their contact details?
Coordination of the implementation of international sanctions is provided by the FOA at the national level.
Financial Analytical Office Financial Analytical Office P.O. BOX 675 Jindřišská 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: email@example.com
AML reporting / AML regulator(s)
- Financial Analytical Office
- Czech National Bank
- Czech Bar Association
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