The management structure should be settled before the application is submitted to the Czech National Bank. The applicant must correctly identify all senior officers and clearly indicate who will effectively manage the currency exchange activity. An unclear division of responsibilities or missing supporting documents may unnecessarily delay the authorisation process
1. Who is considered a senior officer?
For a legal entity, the statutory definition covers its statutory body, any member of the statutory body, its director, a holder of procuration or another person who actually manages its activities. Where the applicant is a Czech limited liability company, all of its managing directors are therefore senior officers.
For a sole trader, the term may include a director, holder of procuration or another person who actually manages the business. A senior officer does not have to be a shareholder or beneficial owner. The person’s legal position and actual management powers are decisive.
2. Who effectively manages the currency exchange activity?
The applicant must identify which of its senior officers will effectively manage the operation of the currency exchange business. This may, for example, be one of the company’s managing directors, a director or a holder of procuration who has genuine responsibility for the day-to-day operation of the exchange office.
Merely naming a person in the application is not sufficient. The person’s stated role should correspond to the actual allocation of responsibilities, internal documentation and management structure of the business.
3. What requirements must the person meet?
All senior officers of the applicant must be trustworthy. A senior officer who effectively manages the currency exchange activity must also:
have completed at least secondary education with a school-leaving examination,
not simultaneously manage the currency exchange activity of another currency exchange operator, unless both operators belong to the same corporate group.
The Czech Currency Exchange Act does not prescribe a particular field of study, university degree, special professional examination or minimum period of professional experience. Nevertheless, experience with financial services, cash operations, AML compliance or staff management is a practical advantage.
4. What does trustworthiness mean?
Trustworthiness is broader than having a clean criminal record. When assessing a person, the Czech National Bank may also consider their professional and business integrity.
Relevant circumstances may include previous regulatory or administrative sanctions, insolvency history, withdrawal of a business authorisation, breaches of obligations towards supervisory authorities or the provision of false or incomplete information. Each case is assessed individually, taking account of the seriousness of the matter, its circumstances and the time that has elapsed.
5. What documents must be submitted to the CNB?
The application must identify all senior officers. A trustworthiness declaration is submitted for each of them. The person who will effectively manage the currency exchange activity must also provide evidence of the required education, typically a secondary school-leaving certificate.
Where the person is a foreign national or has spent a substantial period abroad, a foreign criminal-record document may also be required. The application is submitted electronically through the CNB’s REGIS system.
If a senior officer or the person effectively managing the currency exchange activity changes after authorisation has been obtained, the operator must notify the CNB without undue delay and provide the relevant supporting documents. The authorisation conditions must continue to be met throughout the operation of the business.
Conclusion
Correctly identifying the senior officers is an essential part of the application for a Czech currency exchange authorisation. Before submitting the application, the applicant should review its corporate structure, the trustworthiness and education of the relevant persons and the actual allocation of management responsibilities.
