In the Czech Republic’s efforts to prevent income from criminal activities and the financing of terrorism being legitimised, the final part of anti money laundering (AML) legislation drafted in 2008 has come into force.
A register of ultimate beneficial owners has been established requiring new duties for statutory bodies and all legal entities in the country while third parties now have the right to inspect the register.
A particular feature of the Czech legislation is that firms contracting with public sector organisations must be on the register.
The primary purpose of the new legislation covering the public procurement process is to verify contractors and avoid conflicts of interest of persons or entities with connections with contracting authorities.
The ultimate beneficial owner is a person holding a 25 per cent or more share of the company.
The company itself or the appropriate statutory body is obliged to declare beneficial ownership and each firm must keep a record of and clearly indicate the exact identity of beneficial owners.
Legal entities registered in the public registers before 1 January 2018 have to enter their beneficial owner into the register by 1 January 2019. In this first year of the new obligation, registration will be free of charge for these entities.
Categories: Trade Based Financial crimes News