Hungary Takes Steps to Prevent Financial Crimes

Government Initiatives to Combat Money Laundering and Terrorist Financing

The Hungarian government has taken significant steps to prevent financial crimes in the country by implementing new regulations aimed at combating money laundering and terrorist financing. As part of these efforts, K&H Bank Zrt, one of Hungary’s largest banks, has established a comprehensive program for money laundering prevention.

K&H Bank Zrt’s Approach to Money Laundering Prevention

Compliance Organization: A dedicated department works to prevent money-laundering and terrorism financing.
Cooperation with Law Enforcement Agencies: The bank cooperates with law enforcement agencies in identifying all suspected money-laundering or terrorism financing cases.
Client Due Diligence: The bank must have a clear understanding of the client’s activities, business relationships, financial habits, domestic and market practices, the origin of performed debits and credits, used currencies, and usual transaction size.

New Regulations and Compliance Measures

Prospective Client and Transaction Screening: Existing clients are screened as applicable sanctions are updated.
Employee Training: The bank arranges regular trainings for newly recruited employees and employees being absent for a long time (1 year), as well as organize regular follow-up trainings for employees, at least once a year.
Auditing Activities: Auditing activities provide efficient support for the fulfillment of legal regulations related to the prevention and combating of money laundering and terrorist financing.

Compliance Directorate’s Responsibilities

Monitoring System and Procedures: The Compliance Directorate operates the monitoring system and procedures; performs audits and ex-post monitoring.
Support to Business Areas: The Directorate provides support to the business areas in fulfilling legal regulations related to the prevention and combating of money laundering and terrorist financing.

Internal Audit Directorate’s Responsibilities

Fulfillment of Standard Conditions: The Internal Audit Directorate regularly checks the fulfillment of standard conditions and procedures stipulated.
Reporting to Top Management and Representative of Shareholders: The Directorate reports findings of audits to Top Management and Representative of Shareholders.