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Financial Crimes in Hungary: A Growing Concern for Banks
Maintaining a good reputation is crucial for financial institutions, but it’s becoming increasingly difficult due to rising cases of fraud, money laundering, and corruption. These crimes not only harm businesses but also lead to hefty fines and reputational damage.
In Hungary, the banking sector is particularly vulnerable to financial crimes, with money laundering and terrorist financing being top concerns. To mitigate these risks, banks must adhere to anti-money laundering (AML) regulations and conduct regular risk assessments.
Assessing AML Risks
Deloitte’s Financial Crime team helps banks develop and implement effective AML risk management programs. Our experts assess AML threats and vulnerabilities using a structured methodology that can be tailored to each bank’s needs.
Complementary Services
- Regulatory gap assessments
- Risk assessments
- On-call advisory
- Training activities
- Assurance reports
By leveraging our expertise, banks can minimize the impact of financial crimes and maintain their reputation.
Know Your Customer (KYC) Lifecycle
The KYC lifecycle is critical in mitigating money laundering risks. However, finding a balance between customer experience and regulatory compliance can be challenging. Deloitte’s team helps banks develop effective processes to cover the entire KYC lifecycle, including:
- Customer onboarding
- Ongoing reviews
- Enhanced due diligence
Supporting Operations
- Backlog reduction in transaction monitoring
- KYC review
- Enhanced due diligence
Our complementary services include:
- On-call advisory
- Provision of experienced staff for short- and long-term secondments
- Process development
Sanctions and Screening
Financial institutions must analyze clients and identify politically exposed persons (PEPs) and any exposure related to sanction-imposed individuals or organizations. Deloitte’s team helps banks develop a screening process, review and improve the current process, find optimal data sources, and reduce manual controls.
Complementary Services
- Regulatory gap assessments
- On-call advisory
- Process development
- EDD examination focusing on PEPs and high-risk clients
Transaction Monitoring
Banks manage payment services with millions of transactions, which must be monitored to identify suspicious transactions. Deloitte’s team helps banks develop efficient processes, implement effective rules, investigate alerts, and reduce backlogs.
Complementary Services
- On-call advisory
- Provision of experienced staff for short- and long-term secondments
- Process development
Anti-Money Laundering (AML) Technology
Efficient fight against financial crime is heavily dependent on AML technology. Deloitte’s team provides short and long-term solutions to challenges using our in-house developed technology or partners’ solutions.
Our Cloud-Hosted Workflow Solution, Flow Engine
- Allows banks to effectively respond to all AML requirements
Contact us to learn more about how we can help your bank prevent financial crimes and maintain its reputation. Our experts are ready to assist you.
About the Authors
Krisztina S. Nagy, Partner-in-Charge
Helps banks transform their Risk Management to enhance the accuracy of their capital and impairment estimates, improve business outcomes, and increase cost-efficiency.
Csaba Horváth, Senior Manager
Has been working for clients in the Financial Services Industry for 11 years, conducting sanctions, KYC (both CDD and EDD) reviews, and FATCA implementation support.