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 Hungarian Criminal Code as standalone crimes. The penalties for money laundering and financing terrorism provided in the Hungarian Criminal Code are imprisonment up to ten years, depending on the severity of the crime. Under the Hungarian Criminal Code any person who fails to comply with the reporting obligation prescribed by law concerning the prevention and combating of money laundering and terrorist financing is punishable by imprisonment up to two years.
If a legal entity has enriched itself through the proceeds of a crime committed by an employee or a director, it can be sanctioned with dissolution, restriction of activity or a minimum fine of HUF 500,000 (EUR 1,428) and a maximum of three times the value of the advantage obtained or to be achieved by the crime.
The AML Act provides a range of measures and sanctions applied by the supervisory authorities for non-compliance or inadequate compliance with obligations set out in the AML Act. Fines and penalties vary depending on the type of the infringement, the type of the infringer (an individual or an entity), the feature of the infringement (whether it is initial, repeated or systematic) and can reach as high as HUF 2 billion (EUR 5,714,285), or up to 10% of the annual income according to the consolidated accounts. In the case of senior executives of service providers, a fine up to HUF 500,000,000 (EUR 1,428,000) (in the case of employees up to HUF 20,000,000 (EUR 57,142)) can be imposed, and additionally further measures can likewise be applied to the legal entity service provider if the director/employee of the service provider has committed the infringement for the benefit of the service provider.
Prosecutions, convictions and administrative sanctions have been applied in recent years.