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 Slovak Criminal Code as standalone crimes. The penalties for money laundering and financing terrorism provided in the Slovak Criminal Code are imprisonment from two (or five in the case of financing terrorism) to 20 years, depending on the severity of the crime.
Legal entities can be held liable for the both crimes. The available penalties include forfeiture of property and dissolution of the legal entity.
The AML Act provides a range of sanctions for non-compliance with the key requirements, such as customer checks, record-keeping, and suspicious transaction reporting. Fines and penalties vary depending on the type of infringement, the type of infringer (an individual or entity, or the type of entity—banks, insurers, etc.), whether its initial, repeated or systematic, and can reach as high as EUR 1 million (EUR 5 million in the case of financial institutions).
The number of prosecutions, convictions and administrative sanctions has increased in recent years.