CZECH REPUBLIC Law and Practice Contributed by: Stanislav Šimek, Vojtěch Mlynář and Jakub Dostál, BADOKH
5.2 Regulation of Cross-Border Payments and Remittances Cross-border payments in euros within the European Economic Area are subject to the EU SEPA Regula - tion, which establishes a single set of rules for cash - less euro transfers. The EU Regulation on Cross-Border Payments requires that fees for cross-border euro transactions do not exceed those for equivalent domestic pay - ments. This principle was extended to instant euro transfers, which should not carry higher costs than standard transfers. At the national level, the Czech Payment Services Act governs the provision of payment services, including cross-border transfers. This framework is expected to be substantially revised following the adoption of a new EU regulatory framework, which is anticipated to apply from 2027 onwards. AML/CFT is the primary regulatory concern for cross- border payments. The adopted EU AML package will reshape the framework as of 2027 and will introduce a directly applicable single rulebook. A new EU-level supervisory authority, the Anti-Money Laundering Authority, will exercise direct supervisory powers over high-risk entities. Payment service providers must transmit information about the payer and payee alongside every transfer under the EU Transfer of Funds Regulation. Equivalent obligations apply to crypto-asset service providers for crypto-asset transfers. 6. Marketplaces, Exchanges and Trading Platforms 6.1 Permissible Trading Platforms Trading platforms differ based on the assets traded. Those which trade financial instruments are regulated under MiFID II and the CMUA, which recognises three types of trading venues:
the CNB, unless exempted. Non-bank lenders using this model to provide consumer loans must also hold a consumer credit licence from the CNB. Peer-to-peer platforms match lenders directly with borrowers online. Such platforms require a crowd - funding licence from the CNB. 4.4 Syndication of Fiat Currency Loans Loan syndication occurs mainly in the corporate and real estate lending markets where a single loan is too large or too concentrated for one lender. Major arrang - ers are typically large commercial banks. The borrower appoints one or more arrangers who structure the facility and commit to underwriting a portion of the amount. The arranger then markets the loan to a group of institutional lenders, each taking a portion of the total facility. The syndicate appoints a facility agent (to administer the loan) and a security agent (to hold security on behalf of the lenders). No dedicated syndicated lending statute applies, but participant lenders must comply with applicable rules such as the large exposure limit, individual capital adequacy and AML obligations. 5. Payment Processors 5.1 Payment Processors’ Use of Payment Rails Payment processors may utilise existing payment rails or create new ones, provided they obtain the nec - essary authorisation from the CNB under the Czech Payment Services Act. The central pillar of Czech payment infrastructure is CERTIS (the Czech Express Real Time Interbank Gross Settlement System), operated by the CNB, which pro - cesses interbank payments in Czech crowns in real time. Payment institutions and e-money institutions have been able to become participants in CERTIS since 2025, and use it to settle payment orders within the scope of their licence.
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