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Every obliged entity in the Czech Republic knows the feeling. Excel spreadsheets, manually filled out forms, document copies in binders, screening across three different databases, and at the end — uncertainty about whether it's actually enough. Because the answer is almost always the same: it isn't.
The Open Secret
Let's be honest about something everyone knows but no one says out loud. The majority of obliged entities handle their AML obligations manually, unsystematically, and — to put it diplomatically — inadequately. Client identification? A copy of an ID card sent by email. Sanctions and PEP screening? A one-time Google search. Risk assessment? A spreadsheet someone created three years ago that no one has updated since. Ongoing monitoring? Practically non-existent.
And everyone quietly hopes the same thing: that they'll slip under the radar. That the FAU inspection won't come to them. That no one will notice their AML process is more of a formality than a real compliance system.
Act No. 253/2008 Coll. defines an obliged entity as a natural or legal person conducting business in a sector defined by Section 2. It is not limited to financial institutions — every real estate agent, accountant, tax adviser, lawyer, notary, currency exchange operator, or provider of services related to virtual assets qualifies. The decisive factor is the nature of the activity performed, not the size of the firm or its turnover.
But That's No Longer Enough
Regulation is tightening. The EU has adopted a new AML package — the AMLR regulation, the Sixth Anti-Money Laundering Directive (6AMLD), and established the new European supervisory authority AMLA. Czech legislation will have to adapt. Fines are growing. Inspections are more thorough. And most importantly — liability is personal. It's not the company's problem. It's the problem of a specific compliance officer, managing director, or adviser.
AML has stopped being an administrative formality. It has become an existential risk.
As of 30 December 2024, the scope of obliged entities was extended to include providers of crypto-asset services (CASPs). The EU AMLR 2024 regulation introduces further tightening that will take effect gradually by 2027. Obliged entities that fail to meet the current statutory minimum expose themselves not only to fines but also to reputational risks affecting their access to banking services.
Why Is Everyone Getting It Wrong?
Not because they don't care. But because the tools available to them are either overpriced enterprise systems designed for large banks, or their own improvisation from Excel and shared folders. The middle segment has nothing — no tool that would:
- guide the client through the entire process from identification to the final report,
- automatically screen sanctions lists, PEP databases, and adverse media sources,
- assess risk according to a recognised methodology (FATF, EBA, EU AMLR),
- maintain a complete audit trail in case of an inspection,
- and still be simple enough for anyone to use without AML certification,
- be available immediately — without implementation, consultants, or training,
- work in compliance with both Czech and European legislation.
That's why AML PROOF exists.
The law requires obliged entities to carry out client identification before entering into any business relationship, and for one-off transactions above EUR 1,000. Identification includes verifying identity from a valid document, determining the beneficial owner for legal entities, and verifying that person in the beneficial ownership register (ESM) under Act No. 37/2021 Coll.
Every identification must include mandatory screening — checking the client against EU, UN, and OFAC sanctions lists and the politically exposed persons (PEP) register pursuant to FIU Methodological Guidance No. 7/2024. For PEP clients the law requires enhanced identification and customer due diligence (Section 9a), including establishing the source of wealth, under Section 13 of Act No. 253/2008 Coll.
The AML PROOF Five-Step Process
AML PROOF is a platform that transforms AML from a nightmare into a routine. In just a few clicks. No training. No implementation. You sign up, enter a case, and the platform guides you through the entire process from start to finish.
Case Setup
Enter jurisdictions, channel, and reason for screening — the context of every case, right from the start.
Client Identification
Natural persons, legal entities, mutual relationships, UBO — complete KYC/KYB in one environment.
Screening
Automatic screening against sanctions lists, PEP databases, and adverse media sources. Result immediately: clear, non-critical finding, or critical issue.
Risk Assessment
Risk evaluation using a weighted model (customer 40%, product 25%, geography 25%, channel 10%) with deterministic overrides for critical findings.
Final Report
Complete case documentation, ready for internal archiving and for submission to the supervisory authority. LOW, MEDIUM, or HIGH risk — a clear outcome.
Who Is AML PROOF For?
For every obliged entity under Act No. 253/2008 Coll. and the upcoming AMLR regulation:
- Law firms
- Accountants and tax advisers
- Real estate agencies and intermediaries
- Virtual asset service providers (CASPs)
- Investment intermediaries and wealth managers
- Art and high-value goods dealers
- Non-bank financial institutions
Peace of Mind During Every Inspection
AML PROOF maintains a complete audit trail — every step, every decision, every screening with a timestamp, processor identification, and data version. When the FAU inspection comes, you won't be searching through binders. You open the platform and everything is there.
Liability is personal. Documentation is your insurance.
The FIU requires not only the existence of documents but also their credibility and completeness. Records must include the date and method of identification, the screening result with a timestamp, the name of the person who performed the identification, and the final risk rating. Missing or incomplete records are the most common reason for fines — not deliberate violations of the law.
Handle AML Before AML Handles You
Waiting for things to 'somehow work out' is not a strategy. It's a bet that the regulator will have other priorities. And that bet is looking worse by the day.
Are you an obliged entity? You can resolve your AML obligations in a few minutes — with AML PROOF.
Obliged entities are legally required to retain records of client identification and due diligence for a minimum of 10 years from the end of the business relationship or the execution of the transaction (Section 16 of Act No. 253/2008 Coll.). AML PROOF provides automatic archiving of all records with a full audit trail ready to be presented to the FIU during an inspection.