Hungary’s Anti-Money Laundering and Counter-Terrorist Financing Measures Under Scrutiny
MONEYVAL, the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and Combating the Financing of Terrorism, has recently evaluated Hungary’s progress in addressing technical compliance deficiencies in its anti-money laundering (AML) and counter-terrorist financing (CFT) measures. The report highlights both positive developments and areas that require improvement.
Identifying Non-Compliant VASPs
The Hungarian Financial Intelligence Unit (HFIU) has taken steps to identify natural or legal persons carrying out virtual asset service provider (VASP) activities without complying with AML/CFT requirements. Section 69 of the AML/CFT Act enables authorities to apply sanctions to non-compliant VASPs.
Supervision and Sanctions
While the HFIU has implemented measures to supervise VASPs, MONEYVAL notes that there are still gaps in the supervision process. The report also highlights a lack of sanctions imposed on non-compliant VASPs.
Key Findings:
- Supervision: Gaps remain in the supervision process.
- Sanctions: Insufficient sanctions have been imposed on non-compliant VASPs.
Technical Compliance Rating
Hungary’s technical compliance rating has been re-rated as follows:
- Recommendations 1-5: Largely Compliant (LC)
- Recommendations 6-10: Partially Compliant (PC)
- Recommendations 11-20: Largely Compliant (LC)
- Recommendations 21-40: Partially Compliant (PC)
Follow-Up Report
Hungary will remain in enhanced follow-up and is expected to report back to MONEYVAL within one year. If sufficient progress is not made, the Plenary may propose the application of Countermeasures.
Next Steps:
- Hungary will provide a follow-up report to MONEYVAL within one year.
- The Plenary may propose the application of Countermeasures if sufficient progress is not made.