CZECH REPUBLIC BACKGROUND CHECK

In order to achieve the highest rank in the market, it is necessary to keep an up-to-date on record of the all activities occurring in the organization. Sometimes it happens that records are not up-to-mark then it becomes very difficult for the employees to come across what is missing and how that can be recovered to save from huge loss to the companies. In order to make organization free from risks, the background verifications in Czech Republic came into being. The prime purpose of these services is to get rid of risk and make the firm free from all the problems. After using our superfluous services, firms are performing well in their respective fields.

The ultimate goal behind giving background verification services in Czech Republic is to wipe out all risk which is disrupts the progress of the organizations. Our services are spread allover Czech Republic including major cities Brno, Ceske Budejovice, Havirov, Hradec Kralove, Karvina, Kladno, Liberec, Most, Ostrava, Olomouc, Plzen, Pardubice, Prague, Usti, and Zlin.

For any doubt, kindly check our website info@backcheckgroup.com and resolve all issues.

General Information

GDP USD208.80bn (World ranking 01, World Bank 2013)
Population 11 million (World ranking 81, World Bank 2013)
Form of state Parliamentary Democracy
Head of government Bohuslav SOBOTKA
Next elections 2017, legislative (Chamber of Deputies)

CURRENT LOCAL TIME

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PRODUCTS IN CZECH REPUBLIC

Data Protection

Contribution Details

Eva Ruhswurmova

Senior Associate

Law

The regulation of personal data protection in the Czech Republic is based on Directive 95/46/EC on the protection of individuals with regard to the processing of personal data and on the free movement of such data (the “Data Protection Directive”). The main provisions are contained

in the Act no. 101/2000 Coll., on the Protection of Personal Data, as amended (“Act”).

Definition of Personal Data

Personal data means any information relating to an identified or identifiable data subject. A data subject shall be considered identified or identifiable if it is possible to identify the data subject directly or indirectly in particular on the basis of a number, code or one or more factors specific to his/her physical, physiological, psychical, economic, cultural or social identity.

Definition of sensitive Personal Data

Sensitive data means personal data revealing nationality, racial or ethnic origin, political attitudes, trade union membership, religious and philosophical beliefs, conviction of a criminal act, health status and sexual life of the data subject, as well as any genetic or biometric data of the data subject.

National Data Protection authority

The office for Personal Data Protection (“office”)Pplk. Sochora 27

170 00 Prague 7

Czech republic

Registration

Whoever intends to process personal data as a data controller (or change the already registered processing), shall be obliged to notify this fact in writing to the Office prior to commencing personal data processing (or change of data processing).

The notification must include at least the following information:

  • identification details of the data controller (business name, seat and identification number, and name of persons who are statutory representatives of the data controller);
  • purpose of processing;
  • categories of data subjects and of personal data;
  • sources of personal data;
  • description of the manner of personal data processing;
  • location or locations of personal data processing;
  • recipient or category of recipients of personal data;
  • anticipated personal data transfers to other countries; and
  • description of measures adopted for ensuring the protection of personal data.

If the notification including all required information is accepted by the Office, personal data processing may be started by a data controller after the expiration of 30 days from the delivery of the notification to the Office. In such case the Office records the information stated in the notification in the register of data controllers.

Data Protection officers

There is no requirement to appoint a data protection officer stipulated by the Act.

Collection and Processing

The unequivocal (and revocable) consent of a data subject is required for the processing of personal data. Written consent is not required. However, it is recommended to obtain consent in writing, since the data controller must be able to prove the consent of a data subject during the whole period of the data processing.

Before the consent of the data subject is granted, the data subject must be clearly informed about all the aspects of processing of their personal data.

Personal data may be collected only for processing, or to be processed, if it is adequate, relevant and not excessive in relation to specific purposes for which the data is collected. Personal data may not be used for purposes which are incompatible with the reasons for which the data has been collected.

Personal data collected for different purposes may not be merged

Personal data must be accurate and maintained up to date and it must accurately reflect the current situation of the data subject. Partially or wholly inaccurate data must be deleted or corrected.

The data controller or data processor must not disclose the personal data of the data subject to any third party without the consent of the data subject except where required or allowed to do so by law.

The personal data must be deleted once it ceases to be necessary or relevant for the purposes for which it was collected. However, where a specific law (e.g. the Archiving Act) sets an obligation on the data controller or data processor to keep personal data for a specific period of time, such data may not be deleted even if the data is no longer needed for the purpose for which it has

been collected and processed.

Personal data must be stored in a format which permits the data subject to exercise their rights

of access, rectification, cancellation and opposition.

Special protection rules apply in the case of processing certain “sensitive data” relating to ideology, religion, beliefs, trade union membership (this data often appears on the payroll), racial origin, health (e.g. disability, time off work due to illness, maternity leave, etc.) and

sex life. Special care is required when collecting and processing such data. Express informed consent is generally required for the collection, processing and transfer of such data.

Since 1 January 2006 special protection rules also apply for the processing of birth numbers. Birth numbers (a 10 digit number sequence containing information about date of birth and sex of the holder) are widely used by businesses as key identifiers (of customers, employees etc.) in databases because they provide unambiguous identification of all Czech citizens.

Data controllers need the express consent of data subjects before processing their birth numbers.

Transfer

There is a free flow of personal data guaranteed by the Act if personal data is transferred to a member state of the European Union.

As for personal data transfer to other countries, the Act distinguishes several different groups of

data transfers.

In the first group, the Act stipulates that personal data may be transferred to other countries if the prohibition to restrict free movement of personal data ensues from an international treaty, the ratification of which was approved by the Parliament and which is binding for the Czech Republic. A typical example of such treaty is the Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data.

In the second group, a personal data transfer is possible on the basis of a decision of an institution of the European Union, for example Commission Decision pursuant to Directive

95/46/EC of the European Parliament and of the Council on the adequate protection of personal data provided in Switzerland, or Commission Decision pursuant to Directive 95/46/EC of the

European Parliament and of the Council on the adequacy of the protection provided by the safe

harbor privacy principles and related frequently asked questions issued by the US Department of Commerce regarding subjects of the Safe Harbor by the US Department of Commerce. It should be noted that not every American or Canadian subject is covered by the aforementioned decision.

There are also European decisions providing that personal data may be transferred without official approval under the condition that the contract includes certain standard contractual clauses set by those decisions. These decisions are for example Commission Decision on standard contractual clauses for the transfer of personal data to processors established in third countries under Directive 95/46/EC of the European Parliament and of the Council, Commission Decision amending Decision 2001/497/EC as regards the introduction of an alternative set of standard contractual clauses for the transfer of personal data to third

countries or Commission Decision on standard contractual clauses for the transfer of personal data to third countries, under Directive 95/46/EC.

Neither of the above described ways of transfer of personal data is subjected to an official approval.

In cases other than the two above described ways of transfer of personal data, controllers shall seek a prior permission of the Office to the transfer. For this purpose the controller must prove that:

  • the data transfer is carried out with the consent of, or on the basis of an instruction by the
  • data subject;
  • in a third party country, where personal data is to be processed, sufficient specific guarantee
  • for personal data protection have been created;
  • the personal data concerned is part of a publicly accessible data file on the basis of a special Act or, on the basis of a special Act accessible to someone who proves they have a legal interest;
  • the transfer is necessary to exercise an important public interest following from a special Act or from an international treaty binding the Czech Republic;
  • the transfer is necessary for negotiating the conclusion or change of a contract, carried out by the data subject, or for the performance of a contract to which the data subject is a contracting party;
  • the transfer is necessary to perform a contract between the controller and a third party,
  • concluded in the interest of the data subject, or to exercise other legal claims; or
  • the transfer is necessary for the protection of rights or important vital interests of the data subject, in particular for saving lives or providing health care.

Security

The controller and the processor are obliged to adopt measures preventing unauthorized or accidental access to personal data, its alteration, destruction or loss, unauthorized transmission, other unauthorized processing, as well as other misuse of personal data. This obligation remains valid also after termination of personal data processing.

The controller and the processor are also obliged to develop and to document the technical organizational measures adopted and implemented in order to ensure personal data protection in accordance with the Act and other legal regulations.

Breach notification

There is no mandatory requirement in the Act to report data security breaches or losses to the

Office or to data subjects.

Enforcement

Both data controllers and data processors are potentially liable for any breach of the Act.

In case of a breach of the Act, the Office may order measures to be adopted and impose fines. The Office may impose fines of up to 5 million CZK (approx. EUR 175,000). Fines of up to

10 million CZK (approx. EUR 350,000) may be imposed if:

  • a substantial number of persons are jeopardized by unauthorized interference in their private
  • and personal life; or
  • obligations relating to the processing of sensitive data are breached.
  • A data subject who considers that there has been personal data processing in breach of the Act
  • is entitled to complain directly to the Office.

Electronic Marketing

When dealing with e-marketing, it is necessary to bear in mind that it is quite strictly regulated in terms of Act No. 480/2004 Col. on Some Services of Information Agencies (“ASSIA”) as well as other previously mentioned regulations (esp. the Data Protection Directive and the Act).

The ASSIA states that before sending an e-mail containing marketing information, the consent of the receiver must be obtained. Furthermore, each such message must contain clear and visible information that any further sending of such e-mails can be rejected by the receiver together

with the sender’s contact information and information on under whos name the e-mail is being sent. Last but not least, each such e-mail must contain information that it is a commercial message.

In order to maintain e-marketing as an effective tool, its provider should operate with good-quality databases, which enable a direct targeting of the relevant message.

When processing personal data for marketing databases, it is necessary to abide strictly by

the Act. All rules described above apply to e-marketing respectively.

Online Privacy (including cookies and Location Data)

Online privacy is supervised by the Office. Handling personal data is subject to the similar rules as mentioned above and specific areas are governed by Act No. 127/2005 Coll. on Electronic Communications (“AEC”).

Consent to collection and processing of personal data means the consent is made by electronic means (especially by filling in an electronic form).

Public electronic communication service providers are obliged to ensure the security of the personal data they process which includes technical security and creation of internal organizational regulations.

In cases of a breach of the protection of the personal data of an individual, a public electronic communication service provider is obliged to notify the Office, and in the event that breach of protection is capable of affecting privacy of an individual in a serious way, the individual must be notified.

Apart from a few exceptions, traffic data held by a public electronic communication service provider must be erased or anonymised when it is no longer necessary for the purpose of the transmission of a communication.

As regards cookies, the Czech law is still using the “opt-out” principle (the user must be informed and explicitly allowed to refuse the cookies storage). The “opt-in” principle as introduced by the Directive 2009/136/EC has not implemented into the Czech law.

Relevant supervising and enforcing authorities in this area are primarily the Office and to some extent also the Czech Telecommunication Office.

(Adopted on 1961, amended on 15th February 2002)

Section 160 of the Criminal Code stipulates:

(1) Anyone who while dealing with public interest affairs receives a bribe or accepts promises to be given a bribe shall be punished by maximum imprisonment of 2 years or prohibition to carry out professional activities.

(2) Anyone who is asking for a bribe under the circumstances under clause 1 shall be punished by imprisonment ranging from 6 months up to 3 years.

(3) The imprisonment for a period ranging from 1 year to 5 years shall be imposed to such an offender who has committed the offence specified under clauses 1 or 2 hereof:

a) with the intent of procuring a substantial benefit for himself or for another person or

b) if he commits such act as a public official.

(4) An offender shall be sentenced to imprisonment for 2 to 8 years, if he commits the act given in paragraph 1 or 2

a) with the intent of procuring a major benefit for himself or for another person or

b) if he commits such act as a public official with the intent of procuring a substantial benefit for himself or for another person.

Section 161 of the Criminal Code stipulates:

(1) Anyone who while dealing with public interest affairs provides, offers or promises a bribe, shall be punished by imprisonment of 1 year at maximum or by pecuniary penalty.

(2) A perpetrator shall be sentenced to imprisonment for 1 to 5 years or to monetary punishment:

a) if he commits the act given in paragraph 1 with the intent of procuring a substantial benefit for himself or for another person or of inflicting substantial damage or other particularly serious aftereffect to another person or

b) if he commits the act given in paragraph 1 vis-à-vis a public official.

Section 162 of the Criminal Code stipulates:

(1) Anyone who requests or receives a bribe in order to influence a public official in execution of his/her duties or if he/she has already done so, shall be punished by maximum imprisonment of 2 years.

(2) Anyone who for the reasons given under clause 1 provides, offers or promises a bribe, shall be punished by maximum imprisonment of 1 year.

It should also be noted that the principle of “effective repentance” applies to a list of other offences, although under less strict conditions.

A public official who deliberately causes damage to another person or procures an unauthorised benefit for him/herself or another person commits an offence under § 158 of the Criminal Code in basic facts of the case, where he/she:

a) exercises his/her powers in a manner which is at variance with the law

b) exceeds his/her powers

c) does not fulfil an obligation arising from his/her powers.

Police Background Check Procedures

Who can apply?

• Individuals may directly apply
• A legally authorised representative may apply for criminal records disclosure on behalf of an individual with the written consent of an applicant.
• Employers cannot apply.

Where?

• Regional branches of the Criminal Records Office (CRO) accept applications for excerpts;
overseas applications accepted at embassy of Czech Republic.
• Online application (detailed below)
• Applications for an Excerpt can be filed in person at the CRO or regional offices. An individual
can obtain an application form (SEVT 17 157 0) at the relevant office.

What must the applicant supply?

Online Applications:
•An electronic signature certificate
Criminal Records Office/Regional Office applications:
• Completed application form (SEVT 17 157 0) available from the office of application
• Valid ID card, passport or foreigner’s residency permit
•Receipt for tax stamp payment of fee
•Third party Notarised document (where applicable)
Czech Point applications:
•Valid identification document
•An original copy of their ID card/passport or foreigner’s residency permit.
•Third party Notarised document (where applicable)

What are the costs / turnaround times?

•  Fee of CZK 50 (around £1.50) for applications inside the Czech Republic, payable by tax stamp obtainable at the CRO or branch office.
• For online applications fee is payable by online transfer.
• Turnaround for applications filed at the CRO is immediate.
• Applications filed at regional offices take 3 weeks, and are returned by post to the applicant.
• There is no fast-track system for disclosure.

Contact Details

• Online applications can be made at:
http://epodatelna.rejtr.justice.cz/webform/
• Czech Point website (locations of offices):
http://www.czechpoint.cz/web/index.php

 

The national body from which to obtain disclosure is the Criminal Records Office:
Rejstřik Trestů Praha
Soudní 1
140 66 Praha 4
Tel: 00420 244 006 111
Email: rejstrik@rejtr.justice.cz
The Embassy of the Czech Republic in the
UK: 26 Kensington Palace Gardens W8 4QY
Tel: 020 7243 1115
Fax 020 7727 9654
Email: london@embassy.mzv.cz
Website: www.czechembassy.org.uk
Website: www.mzv.cz/london/en/index.html

Czech Republic – Know Your Customer (KYC) Rules

The Czech Republic has a small, export-oriented economy. However, the country‘s central location in Europe and openness as a market economy leave it vulnerable to money laundering. Fraud and tax evasion are reportedly the primary sources of laundered assets in the country. Czech officials estimate that organized crime in the country generates approximately $40 billion annually. In 2011, officials seized illegal assets valued at approximately $110 million.

Domestic and foreign organized crime groups target Czech financial institutions for laundering activity, most commonly by means of financial transfers. Links between organized crime and money laundering are present mainly in the activities of foreign groups, in particular those from the former Soviet republics, the Balkans region, and Asia.

The Czech Republic is home to a significant black market for smuggled cigarettes and other tobacco products, as well as pirated products from Asia, including CDs, DVDs, and counterfeit designer goods. The Czech Customs Administration has found that Asian criminal groups use a portion of the illegal funds from contraband smuggling for the purchase of real properties, which they then use for business activities. There are 11 free trade zones operating in the Czech Republic, but Czech authorities do not consider them to be vulnerable to money laundering.

Banks, investment companies, real estate agencies, currency exchange offices, casinos, and other gaming establishments all have been used to launder criminal proceeds. There is weak anti-money laundering regulatory oversight of the gaming industry. A further concern is the widespread use of freely transferable bearer shares among Czech companies that obscures true ownership.

KNOW-YOUR-CUSTOMER (KYC) RULES:

Enhanced due diligence procedures for PEPs:

A PEP is an abbreviation for Politically Exposed Person, a term that describes a person who has been entrusted with a prominent public function, or an individual who is closely related to such a person. The terms PEP, Politically Exposed Person and Senior Foreign Political Figure are often used interchangeably

    • Foreign PEP: YES
    • Domestic PEP: NO

Czech Republic – KYC covered entities

The following is a list of Know Your Customer entities covered by Czech Law:

    • Banks, currency exchanges, insurance companies, and postal license holders
    • Securities dealers and exchanges
    • Gaming enterprises
    • Attorneys, trusts and company service providers
    • Realtors, notaries, accountants, tax advisors, and auditors
    • pawnshops and dealers of secondhand goods, including vehicles and of precious metals and stones

Czech Republic – Suspicious Transaction Reporting (STR) Requirements:

Number of STRs received and time frame: 1,540 from January to September 2011

Number of CTRs received and time frame: Not applicable

The following is a list of STR covered entities covered by Czech Law:

    • Banks, currency exchanges, insurance companies, and postal license holders
    • Securities dealers and exchanges
    • Gaming enterprises
    • Attorneys, trusts and company service providers
    • Realtors, notaries, accountants, tax advisors, and auditors
    • pawnshops and dealers of secondhand goods, including vehicles and of precious metals and stones

MONEY LAUNDERING CRIMINAL PROSECUTIONS/CONVICTIONS:

Prosecutions: 34 from January to November 20111
Convictions: Not available

ENFORCEMENT AND IMPLEMENTATION ISSUES AND COMMENTS:

Two aspects of the Czech legal framework continue to constrain efforts to prosecute money laundering. First, prosecutors must prove – without a doubt – that the accused also committed a predicate offense resulting in the laundering of assets. Second, a court can only sentence somebody to prison for one crime, even if several crimes were committed. Convictions for predicate offenses generally result in prison sentences at least as long as those for money laundering, so prosecutors have little motivation to pursue money laundering convictions.

In 2011, despite an environment of fiscal austerity in which most Czech government ministries are facing budget cuts, the Financial Intelligence Unit (FIU) at the Ministry of Finance added ten new staff members. The Unit for Combating Corruption and Financial Crimes also added resources that will focus primarily on asset seizure.

The Czech Republic permits bearer shares, which are widely used by Czech companies. As a result, there is not reliable ownership transparency or adequate reliability of registered information. Although KYC rules require companies to provide financial institutions with evidence of the identities of beneficial owners holding more than a 25% stake in the company, the reliability of company-provided data has sometimes proved questionable. Law enforcement personnel acknowledge that bearer shares are obstacles in their financial investigations because they obscure true ownership. According to a January 2011 report by the Czech research agency Čekia, there are roughly 12,000 joint stock companies that issue bearer shares in paper form, accounting for over half of all joint stock companies in the Czech Republic.

The gambling industry in the Czech Republic is vulnerable to money laundering. The Czech gaming industry is represented by a powerful lobby that has succeeded in blocking most new regulation of the sector. Casinos file a relatively small number of STRs. Other gaming entities, including bars and restaurants with electronic games and slot machines, are not subject to the Anti-Money Laundering Act (AMLA) requirements. Without robust oversight and the applicability of the AMLA to all gaming establishments, the potential exists for money laundering to become more significant in the gaming sector.

The Government of the Czech Republic should ratify the UN Convention against Transnational Organized Crime and become a party to the UN Convention against Corruption.

Risk

Sovereign risk

The budget deficit will remain well within 3% of GDP during the forecast period. The public debt/GDP ratioalready low by EU standards at around 43% of GDP in 2014will have declined by end-2019 owing to reasonable real GDP growth. Total external debt is high relative to other BBB-rated countries, but borrowing costs will remain manageable.

Banking sector risk

Banks are well capitalised and stable, and liquidity levels are gradually rising. A steady rise in capital-adequacy ratios has left the banking sector in a relatively strong position to withstand external shocks, particularly now non-performing loan levels have declined and the foreign-asset position of banks is improving.

Political risk

The opposition is unpopular and presents little danger to the government. However, the ideological heterogeneity of the governing parties is a source of potential instability, especially with the Russia-Ukraine crisis driving a wedge between the parties. The government may not last its full term, but an early election would not endanger creditworthiness

Economic structure risk

The open nature of its economy means that the Czech Republic is exposed to economic shocks in core export markets. Under an adverse scenario of weaker economic growth in the euro zone than The Economist Intelligence Unit currently expects, there would be negative repercussions for macroeconomic stability. The extension of EU sanctions on Russia beyond mid-2015, which we now forecast, will have a mildly negative impact.

Travel Risk

Security

The decision to travel is your responsibility. You are also responsible for your personal safety abroad. The purpose of this Travel Advice is to provide up-to-date information to enable you to make well-informed decisions.

Crime

Violent crime is low, but the number of incidents is rising. Petty crime (pick-pocketing, purse snatching) is common, particularly in Prague. Be vigilant in and around popular tourist attractions, major hotels and the main railway station (Praha Hlavni nadrazi), especially after dark.

Be very cautious when travelling on public transport. Gangs of thieves target subway stations, especially Muzeum, Můstek, Staromĕstská and Malostranská, as well as tram route 22 that runs to and from Prague Castle. Thieves may use jostling and swarming techniques to rob their victims.

Road safety

Rural roads may be uneven, under construction or poorly marked.

Dial 00 420 1230 for information on road conditions.

Public Transportation

Use only officially marked taxis, such as Profitaxi, Cititaxi or AAA Radiotaxi (but not taxis marked AAA Taxi that charge excessive prices).

Tickets are required for public transport and these may be purchased at newspaper kiosks, metro stations and most hotel reception desks. Anyone caught riding without a valid ticket is subject to fines.

Czech railways provide clean, efficient train service to almost every part of the country. Exercise caution on overnight trains from Poland to the Czech Republic as robberies have occurred. Store your valuables in a safe place and do not leave your compartment unattended. Ensure that the door is secured from the inside.

Express buses are often faster and more convenient than trains.

See Transportation Safety in order to verify if national airlines meet safety standards.

Scams

Individuals posing as plainclothes police officers may ask you to see your foreign currency and passports. Politely decline to cooperate, but offer to go to the nearest police station.

See our Overseas Fraud page for more information on scams abroad.

Spiked food and drinks

Never leave food or drinks unattended or in the care of strangers. Be wary of accepting snacks, beverages, gum, or cigarettes from new acquaintances, as they may contain drugs that could put you at risk of sexual assault and robbery.

General safety measures

Exercise normal safety precautions. Do not show signs of affluence, and ensure that personal belongings, passports and other travel documents are secure at all times.

Emergency services

Dial 112 for emergency assistance.

Annual Cases

Budget Autonomy Yes
Annual Budget of the Agency There is no separate budget
Per Capital Expenditure
Expeniture as % of the GDP
Are employees protected by law from recrimination or other negative consequences when reporting corruption (i.e. whistle-blowing)? No
Does your country have freedom of information legislation? Yes
Does your country have conflict of interest legislation? Yes
Does your country have a financial disclosure system to help prevent conflicts of interest? Yes
Who appoints the head of your agency? ChPolice President (Head of the Czech Police)
Who has the authority to remove the head of the ACA? Police President (Head of the Czech Police)
Is there any term limit for the head of the ACA? No
Does your agency measure performance? Yes
Number of investigations launched
Number of investigations completed
Ratio of number of investigations/staff
Full access to Government Yes

Address Format

RECIPIENT

STREET_NAME BUILDING_NUMBER/HOUSE_NUMBER
POSTAL_CODE LOCALITY [SORTING_CODE]
CZECH REPUBLIC

Sample

Dimitri Vasiliou
28 Oktovriou
3035 LEMESOS
CYPRUS

 

Summary

Calendar GMT Reference Actual Previous Consensus Forecast
2015-02-13 08:00 AM Q4 1.3% 2.4% 1.9% 1.81%
2015-02-27 08:00 AM Q4 1.5% 2.4% 1.3% 1.3%
2015-05-15 08:00 AM Q1 3.9% 1.5% 2% 1.6%
2015-06-30 08:00 AM Q1 1.5% 3.9% 3.9%
2015-08-14 08:00 AM Q2 4.05%
2015-09-30 08:00 AM Q2
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