The obliged entity under the AML Act must fulfill a number of obligations. One of them is often overlooked – and yet its neglect risks a fine of up to CZK 10,000,000 (approx. EUR 400K). It is the training of employees and persons in a comparable position (§ 23(1) and (2))
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What the Law Actually Says
Section 23 of Act No. 253/2008 Coll. imposes an obligation on the obliged entity to ensure the training of all employees and persons who participate in its business activities other than in an employment relationship (e.g. cooperating persons based on a contract under the Civil Code, self-employed persons), who may encounter suspicious transactions – even before starting work or similar activities for the obliged entity.
It is not enough to train employees and persons in a comparable position retroactively. The law requires the training to take place before independent professional activities begin.
Section 48(6) details this rule: the worker must not independently perform client identification and verification before completing the training. If the obliged entity does not comply and allows an untrained employee or person in a comparable position to perform KYC, it risks administrative action and multi-million CZK fines.
Why Companies Overlook This
AML training is not new. Yet, FAU (Financial Analytical Office) checks frequently reveal the same errors:
- The employee or person in a comparable position joined, started working with clients, and the training took place 'afterwards'.
- The company provided training as a one-off years ago with no follow-ups.
- Training exists, but documentation is missing (certificates, records, completion dates).
None of these scenarios comply with the law. FAU inspectors specifically target training of employees and persons in a comparable position, and absence of documentation is extremely difficult to defend.
What the Training Must Cover
The law doesn't specify a rigid syllabus, but from the nature of the duties, it is clear what the employee or person in a comparable position must learn. The training must prepare them for actual situations – not just recited definitions. Specifically, it involves four areas:
1. Suspicious Transactions
How to recognize non-standard transactions and suspicious client behavior in daily interactions.
2. Client Identification (CDD)
Procedures for identity verification, detecting the ultimate beneficial owner, and due diligence.
3. Risk Assessment
Methodology for evaluating the risk levels of clients, products, and geographical areas.
4. Suspicion Protocols
Specific steps upon detecting a suspicious transaction, reporting rules, and communication with the FAU.
Training Validity and Updates
Completed training is not valid forever. The legislation evolves – and the training content must reflect the current legal environment.
Recommended practice (approved by FAU inspectors): repeat training annually. Each certificate must feature a distinct completion date and validity period.
Records of training — employee's or person in a comparable position's name, date, content, and method of knowledge verification — must be retained for at least 5 years (§ 23(2) of Act No. 253/2008 Coll.).
How AML PROOF Solves It
At AML PROOF, we built the training module directly into the platform. We don't want training to be extra administrative baggage – it should be part of standard onboarding.
- Our training is split into 4 modules culminating in verification questions.
- Upon successful completion, you (and your team) receive a digital certificate valid for 12 months.
- We update the material regularly – current training version is always up to date and strictly fulfills Section 23.
- The whole team's training status is transparent. You know who has the certificate, who needs a renewal, and who hasn't started yet.
This fulfills your legal obligations demonstrably and without paperwork.
Summary
AML staff training is not optional. It is a legal requisite that must be met before the employee or person in a comparable position starts working independently. A breach risks a fine up to 10,000,000 CZK (approx. EUR 400K).
Ensure the training of your whole team today. With accurate documentation, you'll easily stand your ground during any FAU inspection.