Czech Banks’ Monitoring Led to 750 Criminal Complaints, says arecenze
Out of 7,497 suspicious transaction reports received by the Financial Analytical Office (FAÚ) in 2025, Czech banks generated 5,656 notices, resulting in 750 criminal complaints, according to data reported by arecenze.
How Bank Account Surveillance Operates Under the AML Law
Financial institutions monitor every incoming and outgoing transfer from the moment an account opens until its cancellation. This surveillance is mandated by AML Act No. 253/2008 Coll., designed to target illicitly acquired funds. Banks initiate this oversight through a KYC questionnaire in the banking application, asking customers about their employment, source of income, and typical transaction sizes. Responses create a behavioral baseline used to evaluate future transactions.
When a family member regularly sends rent money, the bank recognizes the recurring pattern. However, an identical sum arriving from an unfamiliar individual falls outside established habits, prompting inquiries about the source of funds. The questionnaire also screens for politically exposed persons, a category covering individuals who hold or previously held high public office, alongside their close family members, as noted in the arecenze report.
Banks Report Money Laundering to the FAÚ
When a bank determines a transaction may relate to money laundering, it reports the matter to the FAÚ without undue delay under Section 18 of the AML Act. If immediate execution would prevent the seizure of suspicious funds, Section 20 permits the bank to delay executing the order for at least 24 hours after the FAÚ receives notification. According to the FAÚ annual report cited by arecenze, frozen funds typically remain blocked for two to three days in practice.
Banks are strictly prohibited from informing clients about these reports. Section 38 of the AML Act enforces complete silence regarding both the notification and any subsequent investigation. Out of the total 7,497 reports received by the agency in 2025, the FAÚ forwarded 2,678 pieces of information to the financial administration and filed 750 criminal complaints.
Required Documentation and Penalties for Untaxed Income
Proving the legal origin of funds requires documentation such as a purchase agreement for real estate or vehicles, a inheritance decision, a deed of gift, or a loan agreement. Under Section 15 of the AML Act, failing to provide requested information forces banks to reject transactions or terminate the business relationship entirely. Disagreements with a bank’s procedures can be addressed through a written complaint to the institution, followed by a submission to the financial arbiter for non-business accounts.
Undeclared income forwarded by the FAÚ to the financial administration triggers back taxes alongside a 20 percent penalty under Section 251 of the Tax Code on the increased tax assessment. Voluntarily disclosing missing taxes via an additional tax return avoids this penalty, though late payment interest still applies.