Povinná školení k AML a compliance

Why AML Training is Crucial for Your Company and Not Just a Legal Obligation

However, it is not just about formally meeting the letter of the law. Effective training is your first and most important line of defense.

The Czech National Bank (CNB) and the Financial Analytical Office (FAU) have long ceased to check merely the existence of internal guidelines. They focus on their actual implementation and functionality in practice. 

Recent cases clearly show that insufficient employee training is perceived as a fundamental systemic failure, leading to further errors and, ultimately, high fines.

An example is the 9.5 million CZK fine imposed on Fio banka, where insufficient employee training was identified as one of the key shortcomings. Similarly, ING Bank received a five-million CZK penalty for deficiencies in AML processes. These cases are not accidental – they signal a clear trend.

The regulator views high-quality and verifiable training as the cornerstone of the entire compliance system.

At ARROWS, our Prague-based legal team helps clients view compliance not just as a cost, but as a strategic advantage. Properly set processes and educated employees build trust with business partners, investors, and the regulators themselves.

Who Exactly Does the Training Obligation Apply To? 

A common misconception is that the AML training obligation applies only to employees in direct contact with clients. 

However, the law and the supervisory practice of the CNB speak very clearly, defining the scope of trained persons much more broadly, which has a fundamental impact on the responsibility of company management.

Under Section 23 of the Czech AML Act, it is necessary to train all employees as well as "cooperating persons" (e.g., independent contractors/freelancers) who may encounter suspicious transactions during their activities. But that is not all. 

Supervisory findings of the CNB explicitly show that training is also essential for members of statutory and supervisory bodies and internal audit staff.

Why is this so important? If a serious AML failure occurs, the regulator can argue that the company's management was inherently negligent if it was not itself adequately trained on the risks for whose management it bears ultimate responsibility. 

Ignorance on the part of top management thus becomes an aggravating circumstance, not an excuse.

Content and Frequency of Training: What Does the CNB Really Expect?

For training to be effective and withstand an audit, it must meet specific requirements regarding content, timing, and regularity. It is not enough to just tick a box on a list – the content must be relevant and the timing uncompromising.

The law establishes an obligation to conduct training at least once every 12 months. However, a crucial and often overlooked requirement is the training of new employees before they are assigned to a work position where they may come into contact with suspicious transactions.

Supervisory findings of the CNB repeatedly identify the neglect of introductory training as a frequent and serious shortcoming.

According to the law, the training content must be continuously updated and focused on four key areas:

1. Typology and signs of suspicious transactions: Training must go beyond general examples. It must reflect the specific risks associated with your line of business, products, and types of clients, as defined in your internal risk assessment.

2. Requirements for client identification and customer due diligence (KYC/CDD): Employees must perfectly know internal procedures for identity verification, determining the beneficial owner, assessing client risk, and especially specific rules for dealing with politically exposed persons (PEPs) or clients from high-risk countries.

3. Procedures for identifying client risk factors: Training must practically demonstrate what information to obtain about the client and the purpose of the transaction and how to evaluate it in the context of AML risks.

4. Procedures upon detecting a suspicious transaction: Every employee must know the exact internal procedure – whom and how to report suspicions to, what the role of the contact person is, and how subsequent communication with the FAU takes place.

A key aspect is that the training content must be directly linked to your System of Internal Principles (SIP). In practice, this means that general, externally purchased e-learning courses alone are not enough, as they cannot cover the specifics of your internal processes. 

The Czech legal team at ARROWS prepares and conducts tailored professional training that precisely reflects your System of Internal Principles and the real risks of your business. We also provide certificates of completion, which serve as key evidence during an audit. For an immediate solution to your situation, write to us at consultation@arws.cz.

For real estate intermediaries, there is an AML e-learning with a certificate available for this purpose, which documents the training in the interval required by law.

Documentation and Record-Keeping: How to Stand Up to an Audit?

From the regulator's perspective, a simple rule applies: if it isn't documented, it didn't happen. Careful and complete record-keeping of conducted training is therefore absolutely essential. Indeed, documentation is one of the first things CNB inspectors will request.

Under Section 23(4) of the Czech AML Act, you are required to keep records of attendance and training content for at least 5 years from when they took place. This five-year period, combined with employee turnover, represents a hidden risk. 

If the FAU retrospectively investigates a transaction from three years ago, you must be able to prove that the specific employee who processed it, and who has long since left the company, was properly trained at that time.

Your audit trail must be bulletproof and contain:

• Detailed training content: Syllabus, presentations used, case studies, and all training materials.

• Proof of attendance: Attendance sheets with participant signatures or digital records from online training.

• Verification of knowledge: Results of final tests or quizzes proving that participants not only heard the material but also understood it.

• Basic details: Date, time, name of the trainer, and list of participants.

ARROWS' legal services also include the preparation of complete training documentation, providing you with certainty and a solid foundation for any potential audit. Need legal assistance with setting up your record-keeping? Contact us at consultation@arws.cz.

Risks and Sanctions: Real Impacts of Insufficient Training

Underestimating the training obligation is not just an administrative oversight. It is a significant risk that can have serious financial and reputational consequences for your company. Sanctions are substantial, and their enforcement by the CNB is becoming increasingly rigorous.

According to the law, a direct fine for failing to train employees can reach up to CZK 5,000,000. However, that is only the beginning. 

Far more serious is that insufficient training is often considered the root cause of other systemic failures, such as failing to perform customer due diligence or failing to report a suspicious transaction, where penalties can reach tens of millions of CZK.

During an audit, you must be able to demonstrate the so-called "reconstructibility" of your procedures – meaning you must retrospectively explain and document why you proceeded in a certain way in a given case. 

Without records of high-quality training that guided employees on how to act, such a defense is nearly impossible.

International Context: Are You Ready for Global Standards?

Czech AML legislation does not arise in a vacuum. It is a direct reflection of European directives, which implement global standards set by the Financial Action Task Force (FATF).

This means that compliance requirements are constantly evolving and tightening in line with international trends and newly identified threats.

For companies with international clients, suppliers, or owners, understanding this global context is absolutely essential. 

Local solutions are no longer enough. It is necessary to ensure that your Czech AML procedures comply with overall corporate policy and international standards.

Thanks to our ARROWS International network, built over ten years, we handle cases with an international element practically every day. Thus, we bring our clients not only knowledge of Czech law but also insight into global compliance trends, which is key to protecting their business abroad.

How Can ARROWS Transform Your AML Obligation into a Competitive Advantage?

At ARROWS, we approach AML compliance comprehensively. Our goal is not just to help you meet the legal minimum, but to build a robust and functional system that truly protects your company while providing a competitive advantage in the form of high credibility. Our services cover the entire cycle of AML obligations.

We start with the basics – we will prepare a tailored System of Internal Principles and a risk assessment that precisely correspond to your business.

Based on these key documents, we will then design and conduct targeted training for all relevant persons in your company. We are also ready to represent you during audits and in administrative proceedings with the CNB or FAU.

Our experience is built on long-term cooperation with a diverse portfolio of clients, which includes more than 150 joint-stock companies, 250 limited liability companies, and 51 municipalities and regions. 

At the same time, we realize that law and business are interconnected. Therefore, we actively connect our clients when we see interesting business or investment opportunities.

Do Not Wait for an Audit, Act Proactively

The supervisory activity of the CNB is active, and its sanctions are real and substantial. Relying on the hope that an audit will not come is a strategy that may not pay off.

Investing in high-quality, tailored AML processes and training is the best insurance against million-CZK fines, reputational damage, and unnecessary stress.

Properly set AML processes and training are the foundation of a safe business. Leave nothing to chance.

Get in touch with our experts at consultation@arws.cz and arrange a non-binding consultation on how we can protect your company.