Financial Crime World

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Hungary’s Financial Sector Takes Action Against Money Laundering with Advanced AML Software Solutions

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Despite being a predominantly cash-based economy, Hungary has made significant strides in combating money laundering and terrorist financing. With a GDP of around EUR 110.100 billion in 2015, the country’s financial services sector is thriving, led by its banking industry comprising thirty-two banks.

The Challenge of Money Laundering

However, with approximately 1-3 percent of bank customers considered high-risk, there is a pressing need for robust anti-money laundering (AML) measures. To address this challenge, Hungary has implemented legislation to prevent and combat money laundering and terrorist financing since 2017.

Enhancing AML Measures

The Financial Action Task Force (FATF) assessment led to the enhancement of Hungary’s AML system, which adheres to international and European standards, as well as Council of Europe and European Union (EU) Directives. Under the AML Act, reporting entities have specific responsibilities, including:

  • Customer due diligence
  • Risk evaluation
  • Categorization

The Role of the Hungarian Financial Intelligence Unit

The Hungarian Financial Intelligence Unit, a part of the National Tax and Customs Administration (NAV), serves as the central authority for receiving, analyzing, and publishing suspicious transaction information.

Compliance and Oversight

To ensure compliance with the AML Act and the Restrictive Measures Act, various agencies are authorized to oversee adherence, including:

  • The government
  • The Hungarian Bar Association
  • Other investigating bodies

The NAV collaborates with these entities to monitor suspicious transactions and activities.

Advanced AML Software Solutions

In light of these efforts, Sanction Scanner is offering its AML software solutions to help organizations in Hungary meet international AML obligations and combat financial crimes. By leveraging a risk-based strategy, our solution enables companies to thoroughly analyze their risk profile and avoid sanctions. Interested parties can request a demo to learn more about the features of our AML solution.

Conclusion

With advanced AML software solutions, Hungary is poised to strengthen its fight against money laundering and terrorist financing, ultimately protecting its financial sector and upholding international standards.