Banks Intensify Scrutiny of Funds, Even Small Deposits
Prague, Czech Republic – Banks are increasing monitoring of client accounts, examining the source of funds deposited even in amounts as low as a few thousand Czech crowns, according to recent guidance.This heightened vigilance aims to detect potential money laundering and other illicit financial activity.
Financial institutions are now flagging transactions that deviate from established client patterns, irrespective of size. Suspicious activity includes sudden large cash deposits inconsistent with a client’s income, repeated deposits just below reporting thresholds, transfers to foreign accounts without clear justification, and significant income from previously unknown sources.
“If the client inserts more cash on his account, it may arouse suspicion of the origin of the money,” explains data provided by one financial institution. “Cash is often used by various illegal organizations… unlike banking transactions… cash is not done for cash.” Banks also monitor the frequency of smaller deposits; numerous transactions of several thousand crowns occurring regularly can also trigger scrutiny.
If a bank deems a deposit suspicious,clients may be asked to provide proof of funds origin – documentation such as payment records,purchase contracts,or donation agreements. Authorities emphasize that receiving such a request is not necessarily cause for alarm.
“If you have been invited to proof of the origin of the funds, definitely no need to panic (if you have a clear conscience),” the guidance states. “Sufficient to work with the bank and provide it with the required information or documents.”
