Financial Crime World

Hungary Takes Steps to Combat Financial Crimes, UPGRADED RATINGS FOLLOW

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Budapest, HUN - Hungary Makes Significant Improvements in Combating Money Laundering and Terrorist Financing

Hungary has made significant strides in combating money laundering and terrorist financing, earning upgraded ratings from the Council of Europe’s anti-money laundering body MONEYVAL. The country has moved from “partially compliant” to “largely compliant” in three key areas: correspondent banking relationships, internal controls in financial institutions, and transparency and beneficial ownership of legal persons.

Key Areas of Improvement

  • Correspondent Banking Relationships: Hungary’s authorities have implemented enhanced due diligence requirements for correspondent banking relationships.
  • Internal Controls in Financial Institutions: Introduced obligations for financial groups and companies register, and established new requirements for financial institutions on screening procedures when hiring employees and ongoing trainings.
  • Transparency and Beneficial Ownership of Legal Persons: Established accurate information on legal persons submitted to the Companies register.

Progress Towards International Standards

MONEYVAL has praised Hungary’s progress in addressing technical compliance deficiencies, noting that the jurisdiction has achieved full compliance with five of the 40 FATF Recommendations constituting the international anti-money laundering and combating financing of terrorism (AML/CFT) standard. While Hungary retains minor deficiencies in the implementation of 32 Recommendations, three remain “partially compliant” and none have been rated as non-compliant.

Upgraded Ratings Reflect Commitment to Improving Compliance

Hungary’s upgraded ratings reflect its good progress in meeting the expectations of MONEYVAL, which requires countries to address most or all technical compliance deficiencies within five years after the adoption of a mutual evaluation report. The country will continue to report back to MONEYVAL on its progress and is expected to submit an updated report in two years’ time.

Conclusion

Hungary’s efforts to combat financial crimes are a significant step towards strengthening its AML/CFT measures, and the upgraded ratings from MONEYVAL reflect the country’s commitment to improving its compliance with international standards.