Financial Crime World

Hungary’s Organized Crime Index: A Concerning Trend

Money Laundering and Terrorist Financing Risks

Hungary is a country with a medium risk of money laundering and terrorist financing. Despite implementing international standards and legislation, law enforcement and authorities have failed to use financial intelligence effectively in investigating cases of money laundering.

Reasons for Concern:

  • Lacks transparency and predictability
  • Excessive red tape and preferential treatment towards Hungarian and government-linked firms
  • Multinational corporations report difficulties with administrative tasks

Corruption and Risk

Corruption is a significant risk in Hungary, particularly in the tax administration and public procurement sectors.

Key Concerns:

  • Unofficial payments are sometimes necessary to resolve administrative tasks
  • Public procurement vulnerable to irregularities at the local level

Victim Assistance Services

Victim assistance services in Hungary are scarce, uncoordinated, and inadequate, exposing victims to the risk of re-victimization.

Current Status:

  • National crisis telephone service (OKIT) operational but only offers services in Hungarian and English
  • Government committed to building a nationwide network of shelters with trained staff

Civil Society and Social Protection

The Hungarian government has adopted laws that hamper the operations of opposition groups, journalists, universities, and NGOs critical of the government.

Key Challenges:

  • Media landscape increasingly concentrated in hands of oligarchs allied with the government
  • New law conflating homosexuality and gender-identity expression with pedophilia

Overall Assessment

Hungary’s measures to prevent organized crime have stagnated in recent years. The country faces significant risks related to money laundering, terrorist financing, corruption, and human trafficking.

Recommendations:

  • Improve financial intelligence and investigation capabilities
  • Enhance victim assistance services and support for civil society
  • Address concerns about democratic backsliding