Real Estate Agencies and AML: An Obligation That Cannot Be Ignored

Real estate agencies in the Czech Republic are also required to comply with anti-money laundering (AML) regulations under Czech Act No. 253/2008 Coll. Although many still overlook these obligations, regulatory authorities require specific internal procedures and, above all, their consistent implementation in practice. Ignorance of the law is no excuse.

Key obligations:

• Client identification and due diligence – required for transactions exceeding EUR 10,000 or where the transaction presents an increased risk.
• Identification of the ultimate beneficial owner – particularly in the case of legal entities.
• Assessment of client and transaction risks – including proper documentation.
• Preparation and regular updates of internal AML policy.
• Employee training – including the maintenance of training records.
• Reporting obligations – suspicious transactions must be reported to the Financial Analytical Office (FAÚ) without delay.

What Does an AML Inspection Look Like in Practice?

Inspections are primarily carried out by the Financial Analytical Office (FAÚ), although trade licensing authorities may also verify compliance with AML regulations during their inspections.

Authorities typically request internal AML policy, client identification records, risk assessments, employee training records and documentation relating to any reported suspicious transactions.

Non-compliance may result not only in financial penalties but also in the suspension of business activities until the identified deficiencies are remedied.

Don't Underestimate an Obligation That Can Be Managed Effectively

At FAIRSQUARE, our Czech team helps real estate agencies establish clear, practical and effective AML compliance procedures. We prepare internal AML policy, implement appropriate processes and provide employee training.

Contact us before the authorities come knocking.