Wed, May
60 New Articles

Anti-corruption Authority to Be Set up in Hungary

Anti-corruption Authority to Be Set up in Hungary

  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

The Hungarian Parliament passed a law at the beginning of October 2022 to set up a new anti-corruption authority called “Integrity Authority” as a part of a legislative package, that was aimed to reach a compromise with the EU regarding the withholding of funds.

The Integrity Authority can initiate proceedings upon the notification from citizens or ex officio. The Authority will be led by a president and two vice presidents, who will be chosen after an open tender and their mandate is not renewable. The Authority will be starting its work from the middle of November 2022 and it will be preparing risk assessments to identify and reduce systemic corruption. If the Authority detects fraud, it must also notify the relevant European bodies, including the European Anti-Fraud Office (OLAF) and the European Public Prosecutor’s Office.

Next to the Authority, a working group is also set up, that consists of the president of the Authority and 10-10 government and non-government members. It is an independent body for analysis, proposal, opinion and decision-making. It examines existing anti-corruption measures, may propose new ones and produces an annual report on the risks. The government must justify any diverging from any of its recommendations.

Another element of the legislative package was the modification of the Hungarian Criminal Code. The amendment establishes a new system, where the coercive prosecution mechanism will no longer be the only mechanism available in certain corruption cases. Anyone can ask the court for a review if the investigating authority or the prosecution refuses to prosecute. The investigating judge has the power to order the opening or continuation of criminal proceedings, that could had previously been ordered by only the prosecutor. The scope of persons entitled to initiate the procedure and the deadline for submission are also extended.

By Rita Parkanyi, Partner, KCG Partners Law Firm

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

Firm's website.

Our Latest Issue