If you’re an accountant in the Czech Republic—or a business owner working with one—then anti-money laundering (AML) responsibilities affect you directly. Under Act No. 253/2008 Coll., which governs measures against money laundering and terrorist financing, accountants are considered “obliged persons.” This means you are legally required to monitor, verify, and report client activity that may be suspicious.
While the law may appear technical and abstract, here’s a clear and practical guide—including what accountants must do and what clients should prepare.
👨💼 Who Needs to Be Verified and When?
Before entering into any financial or service-based relationship, accountants must perform client due diligence (CDD). This applies not just to new clients, but also to existing ones if their behavior or documentation changes in a suspicious way.
| Client Type | Timing | Required Action |
|---|---|---|
| New client (individual or company) | Before starting business | Verify identity and beneficial ownership |
| Existing client with changes | Upon major change or unusual transaction | Re-verify identity and update records |
| Any client showing red flags | At the time of the suspicious transaction | Conduct enhanced due diligence |
🔸 For clients: Before engaging an accountant, be prepared to provide a valid ID, company documents (e.g., extract from Commercial Register), and contact details of the real owner (beneficial owner).
🔎 What Accountants Must Check (And What Clients Should Prepare)
Each client must be assessed based on risk level, and certain information must be collected and verified—preferably through official registries and reliable documents.
| What Must Be Checked | How the Accountant Checks | Client Should Provide |
|---|---|---|
| Identity (individuals) | ID/passport; check name spelling and validity | Valid government-issued ID |
| Identity (companies) | Business register (e.g., ARES), founding documents | Company extract, articles of association |
| Beneficial Owner (UBO) | From registry: Evidence skutečných majitelů | UBO declaration if not yet registered |
| Politically Exposed Person | Screening via PEP databases or questionnaire | Honest declaration, confirmation of position (if relevant) |
| Purpose of business | Risk questionnaire or direct questions | Clarify nature of business and transaction types |
💡 Tip for clients: The more transparent you are during onboarding, the smoother your cooperation will be.
🗂️ Recordkeeping: How Long and What Exactly?
Accountants must store client data for at least 10 years, even after the business relationship ends. This includes:
- Identification documents (scans acceptable)
- Contracts and invoices
- Notes about risk assessments or suspicious activity
- Internal communication regarding AML checks
🔐 These documents must be safely archived and readily accessible in case of an audit by the Financial Analytical Office (FAÚ).
🧰 Tools and Technology to Simplify AML Compliance
Modern accounting practices are leaning into digital tools to stay compliant without being overwhelmed.
Recommended tools:
- ARES for Czech business register data
- SanctionsMap and OFAC for international sanctions screening
📝 Final Checklist: What Clients Should Bring to Their Accountant
If you’re a client working with a Czech accountant, prepare the following:
- Valid ID or company documents
- Beneficial ownership details
- Declaration of business activity
- List of expected payment types (international transfers, crypto, cash, etc.)
- Cooperation for any extra questions on source of funds or ownership structure
