12. 4. 2025

Since the beginning of April this year, new and stricter rules for attorney escrows of financial funds have come into effect in the Czech Republic. The changes are part of an amendment to the Act No. 85/1996 Coll., on Legal Profession, which was passed by the Parliament of the Czech Republic on 26 February 2025. It is explicitly stipulated that the funds held in escrow may only be deposited in a special attorney escrow account maintained by a bank or other financial institution. Funds may be accepted into escrow solely by deposit or non-cash transfer to the attorney escrow account. Before accepting funds, the attorney must provide the financial institution with the contact details of both the depositor and the person entitled to receive the funds. The institution then issues these persons a confirmation of the account’s existence and subsequently sends them confirmations of any transfers or other transactions on the account. The financial institution does not allow the attorney to deposit or withdraw funds in cash from the escrow account. The new rules aim to increase the security of transactions carried out using attorney escrow and to strengthen trust in attorney escrows as a safeguarding instrument.