EC directive to limit client privacy of Czech Banks
 According to the global financial analyst Ernst & Young, the privacy rights of clients Czech banks may soon be limited by a new law against money laundering.
This was said by Ernst & Young on July 23 in its study dealing with exploring the readiness of Czech banks to comply with a European Commission (EC) directive aimed to prevent banks from being used for money laundering and terrorist financing and to tighten bank security. The EC directive requires that all EU member states implement corresponding legislation by the end of 2007. So, it is prompting the implementation of systematic and technological reforms by EU financial institutions.
The Czech Republic has not passed a bill to comply with the directive yet. Currently, the bill is under consideration at the Legislative Council. It is expected to be passed into law by December 15, 2007.
In 1996, an anti-money laundering law has come into force in the Czech Republic, but 11 amendments have made its interpretation confusing. Not to make further amendments to the legislation, the Finance Ministry drafted a new bill in order to replace the 1996 law.
The bill redrafts some client protection protocols allowing banks to exchange information related to questionable transactions and curtailing the ongoing investigation of customers not directly connected with suspicious accounts.