Hungary Makes Significant Progress in Combating Financial Crime

Consequences of Financial Crime Exposed

A new report by the Council of Europe’s anti-money laundering body, MONEYVAL, has revealed significant improvements in Hungary’s efforts to combat financial crime. The country has made substantial progress in addressing technical deficiencies and has been upgraded from “partially compliant” to “largely compliant” in several key areas.

Key Areas of Improvement

• Enhanced Due Diligence Requirements: Hungary has implemented enhanced due diligence requirements for correspondent banking relationships, improving its rating from “partially compliant” to “largely compliant”.
• Internal Controls in Financial Institutions: The country has improved internal controls in financial institutions, leading to an upgrade in its rating.
• Increased Transparency and Beneficial Ownership of Legal Persons: Hungary has increased transparency and beneficial ownership of legal persons, resulting in a significant improvement in its compliance.

Strengthened Measures Against Money Laundering and Terrorist Financing

MONEYVAL praised Hungary for introducing:

• Amendments to the Companies Register: Ensuring that basic information on legal persons is accurate and up-to-date.
• Requirements for Financial Institutions: Requiring financial institutions to screen employees and provide ongoing training.
• New Rules for Correspondent Banking Relationships with EU-based Financial Institutions

Areas for Further Improvement

While Hungary has made significant progress, it still retains minor shortcomings in the implementation of 32 FATF Recommendations. Three recommendations remain “partially compliant”, and the country is expected to report back to MONEYVAL on its progress in two years’ time.

Continued Efforts to Strengthen Anti-Money Laundering Measures

The report highlights the importance of continued efforts to strengthen Hungary’s anti-money laundering and counter-terrorist financing measures. It will be crucial to ensure that these measures are effectively implemented in practice to prevent financial crime and protect the integrity of the financial system.

Commitment to Combating Financial Crime

MONEYVAL’s review of Hungary’s progress demonstrates the country’s commitment to combating financial crime and its willingness to work towards international standards. The report serves as a valuable tool for policymakers, financial institutions, and other stakeholders to understand the country’s efforts and identify areas for improvement.

Consequences of Financial Crime in Hungary

The consequences of financial crime in Hungary are far-reaching, and it is essential that the country continues to prioritize the prevention of money laundering and terrorist financing. By doing so, Hungary can maintain its reputation as a reliable partner in the global financial system and ensure that its economy remains stable and secure.