Hungary Must Act to Prevent Financial Crimes, Say Experts
Maintaining a good reputation is crucial for businesses in Hungary to attract investors, customers, and top talent. However, financial crimes such as money laundering, corruption, and fraud pose significant threats to the country’s economic stability.
The Importance of Financial Crime Risk Management
To mitigate these risks, Hungarian financial institutions must implement robust Financial Crime Risk Management programs, which include:
- Anti-Money Laundering (AML) measures: To prevent and detect money laundering activities
- Know Your Customer (KYC) processes: To verify the identity of customers and assess their risk level
- Transaction Monitoring systems: To identify suspicious transactions and prevent financial crimes
Challenges Facing Hungarian Financial Institutions
One of the key challenges facing Hungarian financial institutions is striking a balance between customer experience and regulatory compliance during the KYC lifecycle. This includes:
Onboarding
The initial process of verifying a customer’s identity and assessing their risk level.
Ongoing Reviews
Regular reviews of a customer’s account activity to ensure they continue to meet risk assessment criteria.
Transaction Monitoring
Identifying suspicious transactions and preventing financial crimes.
Deloitte Experts Offer Guidance
According to Deloitte experts, AML legislation requires service providers in Hungary to have regular external audits of their processes and regulations. The firm’s Financial Crime team can assist clients in designing and executing ML&TF risk assessments, leveraging industry knowledge and expertise.
To prevent money laundering, Hungarian financial institutions must remain vigilant and implement robust AML measures. Deloitte experts recommend:
- Analyzing clients for politically exposed persons (PEPs): And exposure related to sanction-imposed individuals or organizations.
- Developing a screening process: To identify PEPs and high-risk clients.
- Reducing manual controls: By implementing efficient processes and technology.
Transaction Monitoring Systems
Deloitte’s team can help develop effective Transaction Monitoring systems that:
- Identify suspicious transactions: And prevent financial crimes.
- Reduce false positive alerts: By developing efficient processes and rules.
Efficient fight against Financial Crime heavily depends on appropriate AML technology. Deloitte offers short-term solutions using in-house developed technology or partners’ products, as well as the Flow Engine cloud-hosted workflow solution to respond effectively to all AML requirements.
Conclusion
Hungarian financial institutions must act now to prevent financial crimes and protect their reputation. With Deloitte’s expertise and experience, clients can develop effective Financial Crime Risk Management programs that meet regulatory requirements and improve business outcomes.