A summary of the legal and other rules concerning banking issues applying to branches of foreign banks operating under the single licence regime

A. Acts

• Act No. 513/1991 Coll., the Commercial Code, as amended
• Act No. 563/1991 Coll., on Accounting, as amended
• Act No. 21/1992 Coll., on Banks, as amended
• Act No. 6/1993 Coll., on the Czech National Bank, as amended
• Act No. 120/2001 Coll., on Judicial Executors and Executory Activities and on the Amendment of Other Acts, as amended
• Act No. 219/1995 Coll., the Foreign Exchange Act, as amended
• Act No. 253/2008 Coll., on Certain Measures against Money Laundering and Terrorist Financing
• Act No. 284/2009 Coll., on Payment Systems
• Act No. 40/1964 Coll., the Civil Code, as amended
• Act No. 99/1963 Coll., the Civil Procedure Code, as amended
• Act No. 229/2002 Coll., on the Financial Arbiter, as amended
• Act No. 591/1992 Coll., on Securities, as amended
• Act No. 40/2009 Coll., the Criminal Code, as amended
• Act No. 256/2004 Coll., on Undertaking on the Capital Market, as amended
• Act No. 189/2004 Coll., on Collective Investment, as amended
• Act No. 190/2004 Coll., on Bonds, as amended
• Act No. 634/1992 Coll., on Consumer Protection, as amended
• Act No. 513/1991 Coll., the Commercial Code, as amended
• Act No. 563/1991 Coll., on Accounting, as amended
• Act No. 21/1992 Coll., on Banks, as amended
• Act No. 6/1993 Coll., on the Czech National Bank, as amended
• Act No. 120/2001 Coll., on Judicial Executors and Executory Activities and on the Amendment of Other Acts, as amended
• Act No. 219/1995 Coll., the Foreign Exchange Act, as amended
• Act No. 253/2008 Coll., on Certain Measures against Money Laundering and Terrorist Financing
• Act No. 284/2009 Coll., on Payment Systems
• Act No. 40/1964 Coll., the Civil Code, as amended
• Act No. 99/1963 Coll., the Civil Procedure Code, as amended
• Act No. 229/2002 Coll., on the Financial Arbiter, as amended
• Act No. 591/1992 Coll., on Securities, as amended
• Act No. 40/2009 Coll., the Criminal Code, as amended
• Act No. 256/2004 Coll., on Undertaking on the Capital Market, as amended
• Act No. 189/2004 Coll., on Collective Investment, as amended
• Act No. 190/2004 Coll., on Bonds, as amended
• Act No. 634/1992 Coll., on Consumer Protection, as amended 

B. Selected legal and other rules relating to:

1. Liquidity and the financial markets

• Official information of the Czech National Bank of 10 November 2009 regarding Provision of the Czech National Bank No. 2/2003, CNB Bulletin, stipulating the terms and conditions for creating minimum reserves, as amended by Provision No. 3/2004, CNB Bulletin, as amended by Provision of the CNB No. 4/2004, CNB Bulletin, as amended by Provision of the Czech National Bank No. 2/2006, CNB Bulletin and Provision of the Czech National Bank No. 6/2007, CNB Bulletin,
• Official Information of the Czech National Bank of 20 April 2007, on the manner of execution of Czech National Bank's operations on the domestic money market  

2. Currency circulation and payments

• Decree No. 62/2004 Coll. of 2 February 2004, stipulating the manner of execution of payments between banks, settlement on accounts with banks, and technical procedures of banks for corrective clearing
• Decree of the Czech National Bank No. 37/1994 Coll. of 21 February 1994, stipulating the procedure for accepting and handling money and providing compensation for incomplete and damaged banknotes and coins
• Decree No. 553/2006 Coll. of 30 November 2006, on the terms under which it is possible to reproduce banknotes, coins, cheques, securities and payment cards and to produce objects imitating them
• Official Information of the Czech National Bank No. 31/194 - General Terms and Conditions stipulating the principles for the maintaining of clients' accounts with banks and executing payments and clearing on these accounts, as amended and supplemented on 7 June 1994, on 8 December 1997 (Official Information No. 18/1997), and as amended by a supplement issued on 27 December 2000 in Volume 17 of the CNB Bulletin (Official Information No. 12/2000)
• Official Information of the Czech National Bank No. 2/2004, regarding Decree of the Czech National Bank No. 62/2004 Coll., stipulating the manner of execution of payments between banks, settlement on accounts with banks, and technical procedures of banks for corrective clearing
• Official Information of the Czech National Bank No. 43/2007 regarding Decree of the Czech National Bank No. 37/1994 Coll., stipulating the procedure for accepting and handling money and providing compensation for incomplete and damaged banknotes and coins
• Decrees of the Czech National Bank on the putting of currency into circulation or the termination of the validity of some banknotes and coins (see the relevant lists on the CNB website:www.cnb.cz/en/ Czech legal tender /Regulations regarding the issuance of money)

For information – all legislation relating to payment systems and currency circulation is published at: http://www.cnb.cz/en/legislation/cnb_regulations/reg_payment_sys/index.html.

3. Foreign exchange

• Decree of the Czech National Bank No. 376/2009 Coll., on bureau-de-change activity
• Official information of the Czech National Bank of 16 December 2009 regarding certain provisions of the Foreign Exchange Act and the decree on bureau-de-change activity .

4. Balance of payments statistics

• Decree of the Czech National Bank No. 34/2003 Coll. of 20 January 2003, stipulating the scope, period, time limits and manner of fulfilment of the reporting duty referred to in the Foreign Exchange Act, as amended by Decree No. 351/2003 Coll. and Decree No. 33/2006 Coll.¹⁾

5. Monetary and banking statistics

• Provision of the Czech National Bank No. 1/2005 of 17 May 2005 , stipulating the methodology for transmitting and receiving the automated statement data submitted by banks and branches of foreign banks to the Czech National Bank, as amended by Provision No. 1/2006
• Provision of the Czech National Bank No. 2/2009 of 30 November 2009 on the submitting of statements by banks and branches of foreign banks to the Czech National Bank,
• Official Information of the Czech National Bank of 14 January 2010 regarding certain provisions of Provision of the Czech National Bank No. 2/2009 CNB Bull., stipulating the submitting of statements by banks and foreign bank branches to the Czech National Bank 

6. Central register of credits

• Decree of the Czech National Bank No. 164/2002 Coll., of 10 April 2002, on the conditions of access to information contained in the information database of the Czech National Bank - the Central Register of Credits
• Provision of the Czech National Bank No. 5 of 1 August 2002, stipulating the methodology for submission of selected data for the Central Register of Credits by banks and branches of foreign banks to the Czech National Bank 

7. Investment services and acting as a depository²

• Decree of the Czech Securities Commission No. 237/2008 Coll., on the details of certain rules in the provision of investment services
• Decree No. 115/2007 Coll., on the details for fulfilling the duties of a depository of the collective investment fund
• Decree No. 605/2006 Coll., on certain disclosure duties of an investment firm, as amended by Decree No. 242/2007 and Decree No. 234/2008 Coll.
• Decree No. 143/2009 Coll., on the expertise of persons assisting investment firms in their activities
• Decree No. 231/2009 Coll., on the requisites and the manner of keeping of a transactions and orders book of an investment firm and on the principles of keeping records of an investment intermediary
• Decree No. 58/2006 Coll., on the manner of keeping separate records of investment instruments and records based on separate records of investment instruments, as amended by Decree No. 238/2008 Coll.
• Decree No. 115/2007 Coll., stipulating details for fulfilling the duties of a depository of a collective investment fund,
• Official information of the Czech National Bank of 16 June 2009 on the expertise required of persons assisting investment firms and other entities in their activities
• Official information of the Czech National Bank of 18 September 2009 on the investment firm licence 

8. Money Laundering

• Decree No. 281/2008 Coll. on certain requirements for the system of internal principles, procedures and control mechanisms against the legitimisation of the proceeds of crime and financing of terrorism³⁾
• Official information of the Czech National Bank of 26 May 2009 on certain requirements for the system of internal principles, procedures and control measures against the legitimisation of the proceeds of crime and financing of terrorism
  Recognised AML standards

9. Consumer Protection

• Official Information of the Czech National Bank of 23 March 2009 on certain requirements for the system of internal principles, procedures and control measures against the legitimisation of the proceeds of crime and financing of terrorism

1) Pursuant to Article 1(3) of Decree No. 34/2003 Coll., banks and branches of foreign banks active within the territory of the Czech Republic fulfil the reporting duty only in Article 8a of the Decree regarding the time limits for reporting bond issues.
2) If the foreign bank branch carries on the activity "acting as a depository" pursuant to Act No. 21/1992 Coll., on banks, as amended - see Official Information of the Czech National Bank regarding certain provisions of the Act on Banks relating to the single licence.
3) This applies to branches of foreign banks unless the condition laid down in Article 21(7) of Act No. 253/2008 Coll. is fulfilled. This paragraph stipulates that “A foreign credit or financial institution operating in the territory of the Czech Republic via a branch, organisational unit or business premises may opt not to have separate system of internal procedures for their operations provided that their operations are regulated by a similar internal regulation of the said foreign credit or financial institution and this internal regulation stipulates requirements at least equal to those stipulated by this Act. The said internal regulation shall be available in Czech”.