Hungary Enacts Beneficial Ownership Regulations to Boost Transparency and Fight Money Laundering

Enhanced Corporate Transparency in Hungary

BUDAPEST, HUNGARY - In a significant move to combat financial crimes, Hungary has implemented the Central Register of Ultimate Beneficial Ownership’s Information law on May 21, 2021. This legislation aims to shed light on the ownership structures of companies operating within the country’s territory and strengthen its anti-money laundering (AML) measures.

Key Highlights of the Data Background Act

• Scope: The legislation applies to a broad range of entities, including:
  • Companies
  • Organizations
  • Partially state-owned enterprises
  • Trusts registered in Hungary
• Responsibilities:
  • Payment service providers managing payment accounts are responsible for submitting data to the UBO register.
  • The Hungarian Tax Authority (HTA) is tasked with establishing and maintaining the database.

Enhanced Reporting Requirements

As of October 1, 2021, payment service providers will be required to report Ultimate Beneficial Ownership (UBO) information on a monthly basis. This rigorous reporting schedule ensures that the register remains up-to-date and accurate at all times.

• Reporting Schedule: Payment service providers must submit data available as of the last day of each month.
• Monthly Reporting: Payment service providers will be required to report UBO information on a monthly basis.

Commitment to AML Framework

The Hungarian Tax Authority’s role in managing the UBO register underscores its commitment to maintaining a robust anti-money laundering framework within Hungary’s financial landscape. By implementing this legislation, the country demonstrates its dedication to promoting transparency, accountability, and security within its corporate sector.