Czech National Bank Employee Accused of Embezzling Tens of Millions of Koruna

Czech police have detained an employee of the Czech National Bank (ČNB) who, according to investigators, spent years circumventing internal rules to siphon money out of the bank. The damage is estimated at tens of millions of koruna, police announced on their website on Friday.

Police spokesman Pavel Švab said that two months ago officers received information from the Financial Analytical Office about suspicious transactions on the man's bank accounts. Investigators opened a case on suspicion of laundering proceeds from criminal activity and, together with ČNB specialists, began looking into the employee, who had worked in the banking sector for many years.

Working alongside the Czech National Bank, investigators managed to prove that the man — now formally charged — had been bypassing internal regulations to funnel money out of the bank. On Thursday police carried out a special operation involving several searches. "The accused bank employee is currently cooperating with the investigation. He has been charged with theft, and the damage runs into tens of millions of koruna. Investigators continue working to establish the full scope of the case and recover the stolen funds," Švab added.

The case is being handled by the Regional Prosecutor's Office in Brno, and the investigator intends to file a motion to have the accused taken into custody.

According to the ČNB, the theft took place at the bank's branch in Brno. "This case does not affect the day-to-day operations of the Czech National Bank or the performance of its statutory functions," said Jakub Holas, director of one of the ČNB's departments. At the same time, the bank will carry out an extraordinary audit aimed at clarifying all the circumstances of the case and assessing the effectiveness of its current internal control mechanisms.

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Around Prague, based on reporting by novinky.cz