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Hungary’s Progress in Implementing Anti-Money Laundering and Counter-Terrorist Financing Measures
Budapest, May 2022
The Council of Europe’s MONEYVAL committee has released its latest report on Hungary’s progress in implementing anti-money laundering (AML) and counter-terrorist financing (CFT) measures. The report assesses Hungary’s compliance with the Financial Action Task Force (FATF) Recommendations and provides an update on the country’s efforts to strengthen its AML/CFT regime.
Key Findings
The report highlights significant progress made by Hungary in addressing technical compliance deficiencies identified in the 2016 assessment. However, three recommendations - R.8, R.15, and R.32 - remain partially compliant due to ongoing issues with beneficial ownership transparency and customer due diligence.
Hungary has implemented new measures to meet the requirements of FATF Recommendations that have changed since the 2016 assessment. The country has also strengthened its national risk assessment and introduced new regulations for designated non-financial businesses and professions.
Enhanced Follow-up Reporting
Despite making significant progress, Hungary will remain in enhanced follow-up reporting and is expected to report back to MONEYVAL on its continued efforts to strengthen its AML/CFT regime in two years’ time. The Plenary of MONEYVAL has agreed to apply increased follow-up reporting intervals for Hungary.
Recommendations
The report provides recommendations for Hungary to further improve its AML/CFT regime, including:
- Enhancing beneficial ownership transparency
- Strengthening customer due diligence requirements
- Improving the effectiveness of its national risk assessment
By implementing these recommendations, Hungary can further strengthen its efforts to combat money laundering and terrorist financing.
Conclusion
The report concludes that Hungary has made significant progress in addressing technical compliance deficiencies, but there is still work to be done. The country’s continued commitment to strengthening its AML/CFT regime will help to enhance the effectiveness of its financial sector and reduce the risk of money laundering and terrorist financing.
Contact: MONEYVAL Public Information Office +352 3022 9010
About MONEYVAL: MONEYVAL is a committee of the Council of Europe that monitors and evaluates the effectiveness of anti-money laundering (AML) and counter-terrorist financing (CFT) measures in its member states. The committee assesses compliance with FATF Recommendations and provides recommendations for improvement.