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Enhanced Internal Management System for Financial Organizations
Budapest, Hungary - March 2022 - As part of its ongoing efforts to support the financial sector in Hungary, KPMG Advisory Ltd., a member firm of the global KPMG organization, has published guidance on the enhanced internal management system required by the Magyar Nemzeti Bank (MNB), Hungary’s central bank.
Key Recommendations
The MNB’s new recommendations emphasize the importance of establishing and operating a comprehensive control system, including:
- Audit trails
- In-process controls
- Management controls
- A management information system
The guidelines also stress the need for regular education and awareness-raising campaigns to prevent conflicts of interest and fraud.
Key Takeaways
According to KPMG Hungary’s experts, the key takeaways from the MNB’s recommendations are:
- Financial organizations must establish and operate a control system with documented audit trails, including processes, activities, roles, and legal basis.
- In-process controls should be designed into business processes, with separation of duties at an appropriate level to prevent conflicts of interest.
- Management controls should be validated at all management levels, with regular reporting to subordinates in accordance with internal regulations.
- A management information system should be designed and operated to support the activities of financial organization’s management with available information.
Education and Awareness-Raising Campaigns
The guidelines also highlight the importance of education and awareness-raising campaigns to prevent conflicts of interest and fraud. According to KPMG Hungary’s experts, this includes:
- Regular training for employees on fraud prevention and control
- Comprehensive training and education system tailored to organizational units, groups, and jobs
Expert Insights
“Given the current economic situation, it is more important than ever that financial organizations have an effective internal management system in place,” said Ágnes Rakó, Partner at KPMG Hungary. “Our guidance aims to help financial organizations navigate the new requirements and ensure compliance with the MNB’s recommendations.”
Contact Information
For more information or to request a copy of the guidance, please contact:
- Ágnes Rakó, Partner +36 70 370 1792 agnes.rako@kpmg.hu
- Gergő Wieder, Director +36 70 333 1471 gergo.wieder@kpmg.hu
About KPMG Advisory Ltd.
KPMG Advisory Ltd. is a member firm of the global KPMG organization, providing audit, tax and advisory services to clients in Hungary.