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Hungary Sees Uptick in Financial Crimes: A Lethal Threat to Organizations’ Reputation and Profitability

Budapest, Hungary - The financial sector in Hungary is facing a significant threat from various types of financial crimes, including money laundering, corruption, and fraud. These illicit activities not only compromise the integrity of organizations but also result in substantial damages and hefty fines.

Key Risks and Threats

The Deloitte Financial Crime team has identified several key risks that financial institutions must address to mitigate their exposure to these threats. Money laundering and terrorist financing are particularly concerning, as they can erode an institution’s reputation and lead to regulatory penalties.

Mitigating Money Laundering Risk

Hungarian AML legislation requires service providers to conduct frequent external audits of their processes and regulations. Deloitte can assist in designing and executing risk assessments for money laundering and terrorist financing, leveraging its extensive knowledge of the industry and financial crime landscape.

• Know Your Customer (KYC) lifecycle: Deloitte’s team can help develop effective processes to cover the entire KYC lifecycle, minimize its impact on customers, and provide support in operations.
• Politically exposed persons (PEPs): Deloitte can assist in developing a screening process, reviewing and improving current procedures, finding optimal data sources, and reducing manual controls.

Monitoring Transactions for Suspicious Activity

Financial institutions manage millions of transactions, making it essential to monitor them for suspicious activity. Deloitte’s team can help develop efficient processes, implement effective rules, investigate alerts, and reduce backlogs.

Anti-Money Laundering (AML) Technology

To combat financial crimes effectively, AML technology is crucial. Deloitte offers short- and long-term solutions using its in-house developed technology or that of its partners’. Its cloud-hosted workflow solution, Flow Engine, enables institutions to respond to AML requirements efficiently, including KYC onboarding, ongoing due diligence, and remediation.

Proactive Measures Against Financial Crimes

The increasing sophistication of financial crimes demands proactive measures from organizations. Deloitte’s Financial Crime team is dedicated to helping clients navigate these complex issues, mitigate risks, and maintain a strong reputation in the face of growing threats.

For more information or to discuss your organization’s specific needs, contact:

• Krisztina S. Nagy, Partner-in-Charge: [email address]
• Csaba Horváth, Senior Manager: [email address]