When providing its services, the Bank applies the rules, principles, procedures and control measures when combating money laundering and terrorist financing, which result from the following legislation:

• Act No. 483/2001 Coll., on banks – this Act lays down the conditions for the performance of the bank's activities; 
• Act No. 297/2008 Coll., on protection against money laundering and terrorist financing (hereinafter referred to as “Act No. 297/2008”); • Act No. 289/2016 Coll., on the implementation of international sanctions. 

International sanctions represent a set of restrictive measures used by the international community (UN, EU) as a tool to maintain or restore international peace and security, to protect fundamental human rights and to fight terrorism. In this respect, the Bank is obliged to comply with restrictions or prohibitions on the provision of any benefits to entities subject to international sanctions, the conclusion of transactions with them, including foreign-currency transactions, transfers of funds, etc. In these cases, the Bank is obliged to refuse to enter into a business relationship or to terminate the business relationship, if any, or refuse to carry out a particular transaction. These measures aim to prevent and detect money laundering and financing of terrorism. We have selected for you some of the obligations imposed on us by law and with regard to which our RM may contact you in relation to identification or update of KYC. 

The obligation to identify the client arises from Section 7 Identification of Act No. 297/2008 Coll. This obligation to undergo regular checks of the validity and completeness of data applies to every client who establishes a contractual relationship with the bank or prepares or carries out a transaction with the bank.

Requirements by type of entity:

• Natural person (non-entrepreneur) – name, surname, birth registration number or date of birth, if birth registration number has not been assigned, address of permanent residence or other residence, nationality, type and number of identity document,
• Natural person entrepreneur – identical data as for natural person (non-entrepreneur) + identification of the address of the place of business, address of the actual place of business activity, if different from the address of the place of business, IČO – if assigned, designation of the official register or other official record in which this entrepreneur is registered, and the number of entry in this register or record,
• Legal person or property association/trust – identification of the name, registered office address, address of the actual place of business activity, if different from the address of the registered office, IČO, designation of the official register or other official record in which the legal person or property association is registered, the number of entry in this register or record and identification of the natural person who is authorized to act on behalf of a legal entity or property association,
• A person who is represented - finding out his/her data according to the above points and finding out the data of a natural person who is authorized to act on behalf of this legal entity or natural person to the extent of the data as for a natural person and submitting the authorization to represent,
• A minor who does not have an identity document - finding out the name, surname, birth number or date of birth, if a birth number has not been assigned, permanent residence or other residence, nationality of the minor and data of his/her legal representative as for a natural person.

Except for exceptions defined by law, identification or its verification must be carried out in the physical presence of the client, with a natural person presenting an identity card during identification and a legal person presenting a document proving its existence. The Bank is authorized to make copies/scans of documents submitted for identification, even without the consent of the persons concerned (Section 19(1) of Act No. 297/2008 Coll.).

The Bank is obliged to perform due diligence in relation to the client based on Section 10 of Act No. 297/2008 Coll. for the purposes of identifying and recording data necessary for assessing the possible risk of money laundering and terrorist financing.

Depending on the type of entity, the bank is obliged to verify the client in the following scope, in addition to identification and verification (Section 10, paragraph 1 of Act No. 297/2008 Coll.):

• identification of the ultimate beneficial owner (UBO) and taking appropriate measures to verify information related to the identification of the ultimate beneficial owner, including measures to determine the ownership structure and management structure of the client, who is a legal entity or association of assets; When verifying information related to the identification of the ultimate beneficial owner, the obliged entity may not rely solely on data obtained from the register of legal entities, entrepreneurs and public authorities if, based on the risk assessment pursuant to Section 20a, there is a higher risk of money laundering or terrorist financing and is obliged to verify information related to the identification of the ultimate beneficial owner from another reliable source,
• obtaining and evaluating information on the purpose and planned nature of the transaction or business relationship and information on the nature of the client's business for the purpose of understanding the nature of the business, ownership structure and management structure of the client,
• determining whether the client or the client's UBO is a politically exposed person or a sanctioned person,
• depending on the risk of money laundering or terrorist financing, determining the origin of funds or assets in the transaction or business relationship,
• determining whether the client is acting in his own name,
• carrying out ongoing monitoring of the business relationship, including reviewing specific transactions carried out during the duration of the business relationship for the purpose of determining, whether the transactions carried out are in accordance with the knowledge of the obliged entity about the client, his business profile, an overview of possible risks associated with the client and with the source of funds and assets used in the business relationship or transaction, and ensuring the updating of documents, data or information that the obliged entity has at its disposal about the client.

According to the provisions of Section 10, paragraph 5 of the cited Act, the client is obliged to provide the bank with information and documents that are necessary for performing due diligence (according to the points mentioned above) in relation to the client, or identification and verification of identification.

When performing increased due diligence pursuant to Section 12 of the cited Act, the bank, as part of the measures carried out, also collects additional information for the correct assessment and evaluation of the risk - one of them is the detection of an ownership structure exceeding the 10% threshold.

According to Section 15 of Act No. 297/2008 Coll., the bank is obliged to refuse to conclude a business relationship, terminate the business relationship or refuse to execute a specific transaction,

• if for any reason it cannot perform due diligence in relation to the client to the extent pursuant to Section 10, paragraph 1 of the cited Act, or
• if the client refuses to prove on whose behalf he is acting.

A beneficial owner is defined in Article 6a “Beneficial Owner”.

For the purposes of this Act, the identification of a beneficial owner means the ascertainment of name, surname, birth certificate number or date of birth, if no birth certificate number has been assigned, permanent or other residence address and nationality.

In case of legal entities and trusts, as mentioned above, the Bank is obliged to ascertain information about the customer's ownership and control structure – its intermediate shareholders, including the shares in per cent. An intermediate shareholder shall mean a legal entity that owns or controls a share of at least 25% in the ownership structure between the customer and its beneficial owner.

For these legal entities, the Bank is obliged to ascertain the following data:

• name of the legal entity, 
• ID No., 
• registered office address. 

The term first shareholder is used by the Bank to identify the first shareholder in the customer’s ownership structure. Additionally, as regards first shareholders, the Bank also ascertains the identification data of the statutory body (natural person – for the scope, see above as with the customer). 

A PEP is defined in Article 6 “Politically Exposed Person”.

The Bank is obliged to obtain information from clients, including at any time during the course of a business relationship, about the origin of funds or assets used in a transaction or business relationship.

This can be demonstrated for legal entities, e.g. by contractual documentation, accounting documentation, financial statements, annual report, merger/acquisition documents, etc.; for individuals, e.g. by income from a profession, business, credit, loan, dividends paid, purchase and sale agreement or other agreement, etc.; always depending on the specific situation.

• USA PATRIOT Act Certification 
• The Wolfsberg Group Anti-Money Laundering Questionnaire
• AML Program