Hungarian National Bank Imposes Fines on Two Banks for Partners’ AML Compliance Failures at Currency Exchanges
The Hungarian National Bank (MNB) imposed fines totaling HUF108.6 million (approximately £250,000) on two banks for their currency exchange partners’ breaches of local Anti-Money Laundering (AML) regulations.
MNB’s Findings from the Thematic Review
- Five currency exchanges in Hungary had inadequate AML practices
- Exchanges repeatedly breached local AML rules, failing to report suspicious transactions or reporting them with a delay
- Banks did not conduct adequate due diligence checks on their agents
Lenders Neglected Their Obligations
- Takarékbank and the Hungarian branch of Raiffeisen Bank
- Failed to ensure their currency exchange partners complied with local AML regulations
- Ignorant of the deficiencies
Note: MNB emphasized the importance of banks performing regular external audits, especially for small currency exchanges that do not have an internal audit process.
Fines Imposed
| Bank | Fine (HUF) | Approx. Fine (GBP) |
|---|---|---|
| Takarékbank | 12.5 million | 29,300 |
| Raiffeisen Bank | 16.25 million | 38,600 |
| Ciklámen-Tourist | 36.8 million | 86,200 |
| Corner Trade | 19.25 million | 45,000 |
| IBUSZ | 23.75 million | 55,600 |
Corrective Measures Taken
Despite the penalties, the MNB acknowledged that some parties had taken steps to address these issues.