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 criminalizing bribery and requiring public officials to declare their assets annually. While there have been successful prosecutions, experts note that the process can be slow and complicated. Recent laws have improved transparency in public contracts and political financing, and a whistleblower protection law was enacted in 2023, although some critics argue it lacks adequate protections for anonymous whistleblowers.

Czechia has an export-led economy with a GDP of $312 billion, where 72.7% of its GDP is based on exports, primarily from the automotive and engineering sectors. Despite high productivity and low unemployment, the economy faced a decline of 0.4% in 2023, making it the only EU economy not to return to pre-COVID output levels, largely due to high inflation and energy prices. The government forecasts a modest GDP growth of 1.2% in 2024.

Czechia actively seeks to attract foreign investment through competitive policies and incentives, particularly in high value-added sectors such as R&D and technology. The government has implemented a screening law for foreign investments related to national security, while also ensuring compliance with EU standards for labor laws and investor treatment. Despite challenges like high inflation and a recent GDP decline, Czechia remains an appealing destination for foreign direct investment, with substantial support from EU structural funding.