Operating as an Electronic Money Institution (EMI) License holder in the Czech Republic requires strict adherence to compliance obligations. In this article, we will discuss the key regulatory requirements and obligations that EMI License holders in the Czech Republic must fulfill.
Compliance with AML and KYC Regulations
- EMI License holders in the Czech Republic must implement robust anti-money laundering (AML) policies and procedures.
- Conduct thorough know-your-customer (KYC) due diligence, including customer identification, verification, and ongoing monitoring.
Risk Management and Internal Controls
- Establish comprehensive risk management frameworks to identify, assess, and mitigate risks associated with money laundering, fraud, and other financial crimes.
- Implement internal controls, including transaction monitoring systems and employee training programs.
Reporting and Record-keeping Obligations
- Maintain accurate and up-to-date records of financial transactions, customer data, and compliance measures.
- Submit regular reports to the Czech National Bank (CNB), including financial statements, transaction reports, and statistical information.
Data Protection and Privacy
- Ensure compliance with data protection and privacy regulations, safeguarding customer information and maintaining appropriate security measures.
- Obtain customer consent for the collection, storage, and processing of personal data….
Outsourcing and Third-Party Relationships
- EMI License holders must establish proper due diligence and risk management processes when engaging in outsourcing arrangements or entering into relationships with third-party service providers.
- Regularly assess the compliance and security measures of third parties to ensure ongoing compliance with regulatory requirements.
- Obtain customer consent for the collection, storage, and processing of personal data.
Compliance with regulatory obligations is crucial for EMI License holders in the Czech Republic. By implementing robust AML and KYC procedures, establishing effective risk management frameworks, and fulfilling reporting and record-keeping obligations, EMI License holders can maintain their license, protect the integrity of their operations, and contribute to a secure and trustworthy financial ecosystem.