FINANCIAL MONITORING IN HUNGARY

FINANCIAL MONITORING IN HUNGARY

Author

Prykhodko Andrii

FINANCIAL MONITORING IN HUNGARY

In 2017, Hungary adopted a law on preventing and combating money laundering and terrorist financing. Following an assessment by the Financial Action Task Force (FATF), this law was adopted to strengthen Hungary’s anti-money laundering system. The existing structure complies with FATF guidelines, global and European standards, as well as directives of the Council of Europe and the European Union (EU).

The main duties of accountable organizations under the Law on Personal Data are set out in the 4th and 5th Directives on Personal Data. Below are some examples:

• Customer due diligence (customer identification and verification, etc.)
• UBO and the person acting on behalf of the client;
• collection and archiving of information and records;
• assessment and classification of risks;
• use of the shielding system;
• exchange (reporting) of information about suspicious transactions/customers.

Hungarian supervisory authority in the field of AML/CFT: NAV

The Hungarian Financial Intelligence Unit, part of the General Directorate of the National Tax and Customs Administration (Nemzeti Adóés Vámhivatal, NAV), is the central authority responsible for receiving, analyzing and publishing suspicious transactions. / Information about activities. NAV works in collaboration with other investigative agencies, including the Attorney General’s Office and the National Court Office.

Other bodies authorized to monitor compliance with the Law on Personal Information and the Law on Restrictive Measures are:

• Government;
• The Hungarian Bar Association, according to the rule issued by the Minister of Administration and Justice, applies to individual practitioners and legal companies consisting of one person, based on Art. 38 of the Anti-Money Laundering and Terrorist Financing Act CXXXVI of 2007 (“AMLA”);

Under Article 38 of the AMLA, multi-member law firms develop a rule for themselves, which is adopted by the regional bar.

NAV for real estate agency or brokerage and related services; accountants, tax experts, tax consultants, providers of exchange services between virtual currencies and legal tender, providers of custodial wallets and providers of corporate headquarters services.

Rules of the SUB

• Law on restrictive measures: implementation of restrictive measures introduced by the EU and the UN Security Council regarding liquid assets and other financial interests.
• AML Act: Prevention and Combating of Money Laundering and Terrorist Financing.

The Law on Restrictive Measures provides for the freezing of funds and other financial assets, as well as a ban on the provision of financial services. In order to fully comply with EU legal actions and relevant United Nations Security Council resolutions, which impose restrictive measures on liquid assets and other economic interests, the service provider must compare the personal data of all its customers on file with the data of the individuals named in the EU lawsuits and relevant resolutions. UN Security Council. If the results of the verification show that a restrictive measure regarding liquid assets or other financial interests is applied to a person, or if their data coincides with the data of a legal or natural person included in the consolidated list of current restrictive measures introduced in relation to the European Union or the United Nations, the service provider must notify NAV.

Therefore, in Hungary, as in all European cranes, the requirements for financial monitoring are quite strict.

And that’s why you definitely need a financial monitoring lawyer.

Bank lawyer in Hungary is one of our main job profiles. Our bank lawyer will advise you on the following issues

• How much money can be deposited in a bank in Hungary?
• What to do when the bank requested documents about the origin of the cats?
• What documents confirm the origin of funds?
• Where to get documents confirming the origin of funds?
• What to do if there are not enough documents about the origin of the funds?
• How to withdraw (return) blocked funds in a Hungarian bank?
• How to close a bank account?
• How to legally bypass financial monitoring in Hungary?
• What to do if there is no source of funds?
• How to pass finmon in a Hungarian bank?