Money laundering and terrorist financing are criminalised under the Czech Criminal Code as standalone crimes. The legalisation of the proceeds of crime is subject to imprisonment up to ten years. Terrorist financing is subject to imprisonment up to 15 years. Further sanctions, such as forfeiture of property etc., can be imposed.
Czech law recognises corporate criminal liability, therefore companies may also be criminally liable for money laundering and terrorist financing. There is a wide range of sanctions which can be imposed on legal entities, e.g. dissolution of the company, forfeiture of property, monetary penalty, and publishing the judgment.
The AML Act provides a range of sanctions for non-compliance with the key obligations and sets out individual fines and penalties depending on the type of infringement, the type of infringer (an individual or entity or type of entity, banks, insurers, etc.).
Money laundering and terrorist financing are criminalised under the Croatian Criminal Code as standalone crimes. The prescribed sanctions range from six months to eight years for money laundering and from one year to ten years’ imprisonment for terrorist financing.
Legal entities can bear criminal liability under Croatian law. A monetary fine is the most common sanction and for the offences in question (money laundering and terrorist financing) it might be up to HRK 10 to 12 million (EUR 1.3 to 1.6 million).
The Act provides a range of sanctions for non-compliance with the key requirements, such as customer checks, record-keeping, and suspicious transaction reporting. The sanctions vary depending on the type of infringement, the type of infringer (e.g. banks, payment service providers), and can reach as high as HRK 38 million (EUR 5.2 million), or up to 10% of the annual turnover, including gross income, according to the consolidated accounts of the parent undertaking for the previous year. The sanctions are also prescribed for management board members and other responsible persons within legal entities. Additionally, it may be noted that ultimate beneficial owner(s) may also be sanctioned in certain cases.
The number of prosecutions, convictions and administrative sanctions has increased in recent years.