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Hungary’s Financial Institutions Face Compliance Audit Pressure: Experts Weigh In
As Hungary’s financial institutions continue to grapple with the complexities of cloud transformation, a growing concern is emerging - compliance risk. With the Monetary Council’s (MNB) 2019 recommendation requiring financial institutions to be fully compliant, experts are urging caution.
The Importance of Compliance Audits
Compliance audits are now a regular occurrence for Hungarian financial institutions. Many face the daunting task of performing information security risk assessments every other year as mandated by government decree 42/2015. To aid in this process, IT risk assessment tools are being employed to provide practical recommendations and decrease information security risk.
Physical and Human Security Assessments
Compliance extends beyond IT risks, with physical and human security assessments also on the agenda. The MNB requires financial institutions to have regular assessments and adequate risk-based countermeasures in place. Independent risk assessments are available for those seeking guidance, providing peace of mind that regulatory requirements are being met.
Remote Client Identification Process
The remote client identification process is another area where compliance is crucial, with government regulation 26/2020 stipulating that systems must be validated by an independent party every other year. With experience in the most common solutions used in Hungary’s market, experts are well-positioned to perform these reviews effectively.
System Integrity Reviews
Finally, system integrity reviews are a necessary evil for financial institutions, mandated by government decree 42/2015 and Bsztl legislation (2007. CXXXVIII.). Independent parties must conduct these reviews, ensuring that systems meet the required standards.
The Consequences of Non-Compliance
As Hungary’s financial institutions navigate this complex landscape, experts stress the importance of taking compliance seriously to avoid costly fines and reputational damage. With the right guidance and support, institutions can ensure they are meeting regulatory requirements and staying ahead of the curve in a rapidly evolving industry.
Key Takeaways
- Compliance audits are now a regular occurrence for Hungarian financial institutions
- IT risk assessment tools can aid in the compliance process
- Physical and human security assessments are also crucial components of compliance
- Independent risk assessments and system integrity reviews can provide peace of mind that regulatory requirements are being met
- Non-compliance can result in costly fines and reputational damage