Cases of unauthorised deposit-taking from the public on the rise in the Czech Republic, CNB to tighten sanctions
Only banks or entities with the relevant authorisation are permitted to take deposits from the public in the Czech Republic. However, the Czech National Bank (CNB) is currently recording an increase in cases where other entities are doing so without authorisation. This constitutes very serious unlawful conduct, for which the CNB has already imposed fines amounting to tens of millions of Czech korunas this year. In an effort to protect the public’s money, the central bank is to further tighten its sanctioning policy in this area.
Obtaining money from the public is subject to strict regulation in the financial market, primarily in order to protect clients and their funds. An important element of this protection is deposit insurance, which in the Czech Republic is provided by the Deposit Insurance Fund and is mandatory for all banks and credit unions.
However, there is a growing number of cases where entities without due authorisation are unlawfully taking deposits from the public. This very often happens on the basis of loan agreements concluded with members of the public, which these entities use to circumvent the rules. Funds collected in this manner are not covered by deposit insurance or by the well-developed system of financial market supervision in the Czech Republic, and the activity of collecting such funds is not subject to strict legal regulation.
The CNB is therefore warning the public against cooperating with illegal providers of such financial services. If an individual entrusts their money to an unauthorised entity, they face a serious risk of losing all their funds.
To protect depositors’ funds, the Act on Banks deems the unauthorised taking of deposits from the public to be very serious unlawful conduct. This is reflected in the sanctions the CNB may impose for violations of the law.
The CNB has so far imposed fines ranging from a few million to tens of millions of korunas as punishment for this unlawful conduct. In 2025, for example, it imposed fines of CZK 12 million and CZK 15 million.
Given the increasing frequency of such activity, it is evident that the fines imposed so far have not sufficiently fulfilled one of the primary functions of administrative penalties – general prevention. For this reason, the CNB will continue to tighten its sanctioning policy in this area.
Jakub Holas
Director, CNB Communications Division