99% of companies dealing with finance, cryptocurrencies, or payment services in the Czech Republic will eventually face an AML audit by the FAU. Last year alone, requests from the Financial Analytical Office (FAU Czech Republic) to legal entities increased by 40%: and this is not the limit: in 2025, stricter anti-money laundering legislation and an expansion of the list of AML obliged entities are expected. Why do successful entrepreneurs, who meticulously build business processes, suddenly face account blockages, fines, and licensing threats? How can you ensure not only formal but also real compliance with FAU requirements, minimize risks, and protect your business reputation?
My experience and the cases of COREDO show: passing the FAU AML audit is not a one-time task but a strategic process that requires systematic preparation, a thorough understanding of regulatory requirements, and constant improvement of internal control. In this article, I will thoroughly analyze how to prepare a company for the FAU audit in the Czech Republic, what documents and procedures are necessary, what mistakes even experienced market players make, and how to avoid them. Here you will find not only a step-by-step guide but also practical recommendations based on real COREDO cases, which will help you pass the FAU audit with minimal risks and maximum efficiency.
If you want not just to “report” to the regulator but to build a sustainable AML compliance system capable of supporting the scaling and growth of your business in the Czech Republic and the EU – read on. This guide will give you a strategic advantage.
FAU Czech Republic and AML audit: what businesses should know
The role of the FAU in the Czech financial monitoring system
The Financial Analytical Office (FAU Czech Republic) is the central financial monitoring authority that controls compliance with the anti-money laundering legislation of the Czech Republic and the EU. The responsibility of the FAU includes not only banks but also all companies falling under the definition of AML obliged entities: fintech, cryptocurrency services, payment institutions, investment funds, accounting and law firms, as well as a number of other sectors.
COREDO’s practice confirms: the FAU is not limited to a formal document check but evaluates the real effectiveness of internal control, the completeness of KYC procedures, the transparency of the origin of funds, and the company’s ability to identify suspicious transactions. This is why implementing comprehensive AML compliance for companies in the Czech Republic becomes an integral part of sustainable business development.
Who and when does the FAU audit
An FAU audit of a business can be scheduled (as part of annual monitoring) or unscheduled: for example, triggered by a suspicious activity report, a customer complaint, or in connection with an investigation into high-risk jurisdictions. FAU requirements for legal entities apply to all companies that:
- conduct activities related to managing clients’ monetary resources;
- perform cryptocurrency exchange or storage;
- conduct payment operations, investment services, accounting, or legal business support in the Czech Republic.
The COREDO team has implemented dozens of projects where the FAU audit impacted not only large financial institutions but also startups that had just registered a company in the Czech Republic. It’s important to understand: even if the company’s turnover is small, the formal status of an AML obliged entity requires full compliance with the anti-money laundering legislation of the Czech Republic.
Main FAU requirements for companies
The FAU sets comprehensive requirements for legal entities, among which the key ones are:
- the presence and regular updating of internal AML policies and procedures;
- the implementation of an internal control system aimed at detecting suspicious transactions;
- effective KYC procedures and maintaining a client dossier;
- transparent ownership structure and beneficial ownership;
- regular risk assessment, including work with high-risk jurisdictions;
- appointment of an AML contact person and their registration with the FAU;
- timely reporting of suspicious activities.
The solution developed at COREDO for clients from the cryptocurrency and payment services sectors demonstrates that only the integration of all AML compliance elements allows passing the FAU audit without significant remarks and fines.
How to prepare a company for an AML audit by the FAU in the Czech Republic
Documents for the FAU audit: full list
One of the most common requests from COREDO clients: what documents are needed for passing the AML audit in the Czech Republic? In practice, the FAU requires:
- the company’s statutory documents (charter, excerpt from the Czech Commercial Register);
- a business plan for the regulator (especially for crypto and fintech companies);
- internal AML/KYC policies and procedures;
- documents confirming the origin of funds;
- dossiers on clients and counterparties (KYC procedures Czech Republic, due diligence);
- reports on internal and external audits of financial statements;
- confirmation of the registration of the AML contact person;
- evidence of the implementation of an internal control and reporting system for businesses in the Czech Republic.
In one of COREDO’s cases, preparing a complete set of documents allowed the client to pass the FAU audit without additional requests, which significantly reduced the duration and operational costs.
Implementing and updating AML/KYC policy
An effective AML/KYC policy for the FAU is not just a formal document but a live risk management tool. At COREDO, we recommend:
- regularly reviewing and updating internal policies in light of legislative changes;
- implementing a risk-oriented approach to clients and operations;
- using automated systems to monitor suspicious transactions;
- training employees on AML procedures and KYC.
Our experience shows that companies that integrate AML compliance into daily business processes demonstrate better resilience to FAU audits and scale more quickly into new markets.
Registration of the AML contact person and their responsibilities
Registration of the AML contact person in the Czech Republic is a mandatory requirement for all AML obliged entities. The compliance officer is responsible for:
- interaction with the FAU;
- timely reporting of suspicious activities;
- implementation and control of AML procedures;
- organization of staff training.
In 2025, FAU requirements for the qualification and experience of the contact person will be tightened: confirmed education, experience in the AML field, and knowledge of Czech legislation will be necessary. COREDO’s practice confirms: appointing a professional compliance officer reduces the risk of fines and speeds up communication with the regulator.
Risk assessment and preparation for due diligence
Risk assessment during an AML audit in the Czech Republic: a key preparation stage. It is important to:
- identify high-risk jurisdictions and types of suspicious operations;
- conduct internal due diligence on clients and partners;
- document the results of the assessment and adjust internal procedures.
The COREDO team recommends using specialized tools for automating due diligence and assessing the sustainability of the business model, especially when working with international clients.
Stages of passing the FAU audit in the Czech Republic: step-by-step guide
Pre-audit and internal control
Before submitting documents to the FAU, it is important to conduct an internal audit – a test check of compliance with all processes and documents. At COREDO, we use checklists and methodologies based on FAU requirements and European directives to identify weaknesses and eliminate them before the official audit. An external audit of financial statements can also be an additional argument in favor of business transparency.
Document submission and interaction with the regulator
Document submission is carried out through FAU electronic forms. It is important to:
- provide a complete set of documents;
- accurately fill in all forms;
- promptly respond to FAU requests.
Negotiating with the FAU requires professionalism and clear argumentation. COREDO’s experience shows: transparent communication and a readiness for dialogue minimize the risk of prolonged audits and additional requirements.
Verification of funds’ origin and KYC procedures
The FAU pays special attention to verifying the origin of funds in the Czech Republic and the effectiveness of KYC procedures. Companies must:
- documentally confirm funding sources;
- conduct client identification through a multi-level scheme (KYC, enhanced due diligence);
- maintain a client dossier with regular information updates.
In one of COREDO’s projects for a fintech company, implementing an automated KYC platform significantly reduced operational costs and improved the quality of customer verification.
Responding to FAU requests and corrective actions
During an AML audit in the Czech Republic, the FAU may send additional requests, require clarifications or procedural adjustments. It is important to:
- promptly respond to all messages;
- document all actions taken to address comments;
- if necessary, initiate a dialogue with the regulator to clarify positions.
COREDO’s practice includes cases where promptly providing explanations for suspicious activities helped avoid fines and limit requirements to modify internal procedures.
Errors and risks during AML audit: how to avoid them
Common errors by companies and their consequences
Among the most common errors companies make during FAU audits:
- formal approach to implementing AML/KYC policy;
- absence of current documents for the FAU Czech Republic audit;
- insufficient qualification of the AML contact person;
- ignoring requirements for maintaining a client dossier;
- untimely reporting of suspicious operations.
The responsibility of accountants under Czech AML law and company management is personal, and fines for AML violations in the Czech Republic can reach millions of crowns and lead to license revocation.
How to minimize risks and prepare the team
Minimizing risks during the FAU audit in the Czech Republic is possible through:
- regular staff training on AML procedures;
- conducting internal training and test audits;
- automation of due diligence and KYC processes.
COREDO develops training programs and methodological materials that enable quick team preparation for any FAU audit scenario.
Practical cases and successful strategies
One of COREDO’s cases: supporting the registration of a crypto exchange in the Czech Republic: thanks to comprehensive document preparation, the implementation of an automated internal control system, and regular staff training, the company passed the FAU audit with minimal remarks and obtained a crypto exchange license in the Czech Republic in the shortest possible time.
Among the best practices for interacting with the FAU to minimize the risk of fines are proactive communication, regular self-assessment of risks, and the use of external audits to confirm the transparency of business processes.
Features of the FAU AML audit for cryptocurrency and fintech companies
License for crypto exchange and FAU registration
For cryptocurrency and fintech companies, registration in the Czech Republic and obtaining a license for a crypto exchange in the Czech Republic require special attention to AML compliance. At COREDO, we assist clients at all stages – from preparing a business plan for the regulator to FAU registration for crypto businesses, considering the specifics of working with digital assets and international payments.
Requirements for internal control and funds segregation
Crypto and fintech companies are required to implement segregated accounts for companies in the Czech Republic, ensure the segregation of client funds, and ensure transparency of all operations. The implementation of internal control for the FAU must consider the specifics of digital assets, and the automation of monitoring suspicious transactions becomes a mandatory standard.
New FAU requirements and European directives
Starting in 2025, new FAU requirements based on the latest European AML directives will come into effect. This includes:
- expanding the list of AML obliged entities;
- tightening requirements for identifying beneficial owners;
- regular updates of internal AML policies;
- integration of FAU requirements into the business processes of international companies.
COREDO tracks all legislative changes and helps clients timely adapt to new standards, ensuring compliance with both Czech and pan-European regulatory requirements.
Practical recommendations and checklist for successfully passing the FAU audit
| Stage | Key actions | Documents/tools | Responsible persons |
|---|---|---|---|
| Preliminary audit | Internal analysis, test check | AML/KYC policy, internal audit | Compliance officer |
| Document collection | Prepare full set | Charter, business plan, AML/KYC documents | Legal department |
| Registration of contact person | Appointment, FAU notification | Application, qualification confirmation | Management |
| Interaction with FAU | Respond to queries, resolve comments | Electronic forms, correspondence | Compliance officer |
| Staff training | Conduct training sessions | Guidelines, online courses | HR, compliance officer |
Practical steps for passing the FAU include regular updates of internal control, KYC automation, maintaining a client dossier, and constant communication with the regulator. This approach allows you to prepare the company for the FAU audit in the Czech Republic and minimize risks.
Answers to frequently asked questions by entrepreneurs about the FAU audit
Key conclusions and recommendations for business
- Passing the FAU audit in the Czech Republic is a strategic process requiring a systematic approach to AML compliance.
- The key to success is integrating internal AML policies, automating KYC, regularly assessing risks, and having a professional team.
- Use checklists, train staff, and maintain transparent communication with the regulator.
- Keep up with legislative changes and promptly update internal procedures.
- For self-preparation, we recommend using current FAU, European regulator resources, and professional tools for automating due diligence and transaction monitoring.
COREDO’s experience shows: only a comprehensive and proactive approach to AML audits allows not just complying with FAU requirements but creating a competitive advantage in the Czech and EU markets.