FATF Status

The Czech Republic is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in The Czech Republic was undertaken in 2022. According to that Evaluation, The Czech Republic remains Compliant for 6 and Largely Compliant for 29 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 3 of the Effectiveness & Technical Compliance ratings.

The Czech Republic has established a legal framework to combat corruption, including laws that criminalize bribery and require public officials to declare their assets. While there have been successful prosecutions, experts note that legal proceedings can be lengthy and complicated. Recent amendments to laws enhance transparency in public contracts and political financing, although challenges remain in effectively implementing these measures and protecting whistleblowers.

Czechia has an export-led economy with a GDP of $312 billion, where 72.7 percent of its GDP is based on exports, primarily from the automotive and engineering sectors. Despite a low unemployment rate of 2.8 percent, the economy faced a year-on-year GDP decline of 0.2 percent in 2023, attributed to high inflation and energy price increases, although growth is expected to resume with a forecasted 1.2 percent increase in 2024.

Czechia actively seeks to attract foreign investment through competitive policies, including the amended Investment Incentives law, which focuses on high value-added investments in R&D and technology sectors. The country has a robust foreign direct investment (FDI) environment, with total foreign investment reaching $202.5 billion by the end of 2022, and no significant discriminatory practices against foreign investors. Additionally, the government provides support through CzechInvest, which assists foreign investors in navigating the Czech market and implementing investment projects.