Anti-Money Laundering (AML) regulations and Know Your Customer (KYC) requirements are fundamental obligations for all KFT companies operating in Hungary. Ignoring them exposes the company to significant penalties and reputational risks.
What Hungarian AML Regulations Entail
Hungary has transposed the IV and V EU Anti-Money Laundering Directives through Act LIII of 2017. KFTs are required to identify ultimate beneficial owners (UBOs), retain documentation for at least 8 years, and report suspicious transactions to the competent authority (NFIS).
KYC Obligations for KFTs
- Customer identification: valid identification document and address verification
- Ultimate Beneficial Owner (UBO): registration in the Hungarian UBO register mandatory since 2021
- Ongoing monitoring: periodic updating of customer data
- Staff training: mandatory AML training for employees and directors
Penalties for Non-Compliance
Penalties for AML/KYC violations in Hungary can be up to 10% of annual turnover or 2 billion HUF (~€5 million). The supervisory authority (MNB for financial entities, NAV for businesses) conducts periodic checks.
How to Comply
Elevate Advisory Group supports KFTs in implementing compliant AML/KYC procedures: from drafting internal manuals to staff training, and managing mandatory reports.
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