Hungary

New Documents

According to the announcement made by the Central Bank of Hungary, the European Banking Authority welcomed the EU Commission’s anti-money laundering and counterterrorist financing action plan, which focuses on six pillars.

The Hungarian National Bank, Magyar Nemzeti Bank, published a report on financial technology and digitalization which provides insight into recent developments in financial innovation, including the launch of stable coins and the related cyber risks associated with digital finances.

News

Enforcement Actions

0 Items Found


Important Facts

  • The U.S. State Department classifies Hungary as a jurisdiction of concern. While the jurisdiction is not a major financial center, it acts as a link between the former Soviet Union and Western Europe. The country's primarily cash-based economy and well-developed financial services industry make it attractive to foreign criminal organizations. Organized crime groups increasingly use the country as a base for operating cyber-related fraud and laundering proceeds using shell companies and the banking system. Drug traffickers also exploit Hungary as a transit point for moving illegal drugs from Asia and Turkey to Europe. Money laundering cases mostly stem from financial and economic crimes, such as tax-related crimes, cyber-related fraud, embezzlement, misappropriation of funds, theft of bankcards and social security fraud. Illicit proceeds also result from narcotics trafficking, prostitution, human trafficking and organized crime activities. There is a black market for smuggled goods in Hungary, primarily related to customs, excise, value-added tax evasion, as well as tobacco smuggling and human trafficking on the Hungarian-Ukrainian border.
  • KYC Covered Entities:  Banks; financial service providers; investment service providers; employer pension service providers; insurance service providers; intermediary and voluntary mutual insurance fund service providers; commodity exchange service providers; sellers and issuers of international postal money orders; real estate agents and brokers; auditors; accountants; certified and noncertified tax consultants and advisors; casinos, card rooms, online gaming operators; precious metal and high-value goods traders; traders accepting cash payments of more than 3,600,000 forints (approximately $12,900); lawyers; notaries; and trustees
  • STR Covered Entities:  Banks; financial service providers; investment service providers; employer pension service providers; insurance service providers; intermediary and voluntary mutual insurance fund service providers; commodity exchange service providers; sellers and issuers of international postal money orders; real estate agents and brokers; auditors; accountants; certified and noncertified tax consultants and advisors; casinos, card rooms, online gaming operators; precious metal and high-value goods traders; traders accepting cash payments of more than 3,600,000 forints (approximately $12,900); lawyers; notaries; and trustees
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: No
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 6 (January – October, 2015); Convictions: 5 (January – October, 2015)
Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 methodology

Technical Effectiveness
Compliant : 6 High : 0
Largely Compliant : 27 Substantial : 2
Partially Compliant : 7 Moderate : 5
Non-Compliant : 0 Low : 4

Hungary's technical compliance was re-rated in a Feb. 15, 2019 follow-up report

BASEL i

Rank : 81/141
Score : 4.99/10

TRANSPARENCY INTERNATIONAL i

Rank : 70/180
Score : 44/100

Tax Justice Network i

Rank : 75/133
Score : 54/100