Financial Crime World

Hungary Cracks Down on Financial Crimes: A Comprehensive Look at Money Laundering and Terrorist Financing Legislation

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Combating Financial Crimes in Hungary

Hungary has recently enacted legislation aimed at combating financial crimes, making it a criminal offense to engage in money laundering and/or terrorist financing. The Hungarian Criminal Code (HCC) prohibits these offenses as standalone crimes.

Offenses and Penalties

Money Laundering

  • Defined in Sections 399-400 of HCC as concealing or disguising the origin or location of property originating from a punishable act.
  • Receiving, transferring, participating in alienating, or seeking to prevent forfeiture of assets related to such property is also considered money laundering.

Negligent Money Laundering

  • A criminal offense that requires the perpetrator to be aware of the criminal origin of the property but failed to recognize it from the circumstances.

Penalties

  • Imprisonment up to ten years, depending on the severity of the crime.
  • Legislation does not have extra-territorial reach, but underlying criminal activities can be committed abroad.

Anti-Money Laundering and Counter-Terrorism Financing Regulations

  • Businesses and individuals operating in particular sectors or undertaking specific activities are subject to registration and reporting obligations.
  • Failure to comply with these obligations can result in imprisonment for up to two years.

Hungarian Financial Intelligence Unit (HFIE)

  • Part of the National Tax and Customs Administration, responsible for receiving, analyzing, and disseminating suspicious transactions/activity reports.
  • Contact information available on their website or by reaching out directly.

Conclusion

As Hungary continues to crack down on financial crimes, individuals and businesses must remain vigilant and compliant with the legislation to avoid severe penalties. Understanding the legislation and regulations is crucial for maintaining a secure and trustworthy financial environment in Hungary.