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Hungary - New Anti-Money-Laundering Act Entering into Force on 26 June 2017

Hungary - New Anti-Money-Laundering Act Entering into Force on 26 June 2017

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A new act on Prevention and Combating of Money Laundering and Terrorist Financing will enter into force, replacing the anti-money laundering act currently in force, on 26 June 2017. The new act is intended to implement the provisions of the EU Directive 2015/849 (i.e. the 4th Anti-Money Laundering Directive).

The regulation method of the scope will change; i.e. instead of listing the activities concerned, the new act specifies the organizations and service providers which shall apply the statutory provisions. From the perspective of the service providers falling within the scope of the new act, one of the most beneficial provisions is that they will be allowed to complete the identity verification by electronic means, contrary to the current law, under which the client identification might only be carried out personally in written form. Another innovation of the new act is the establishment of a central database for storing the data of the beneficial owners. Furthermore, a stricter sanction regime will be introduced, as the amount of the penalties will increase significantly (e.g. for financial institutions from HUF 500 million to HUF 2 billion). In order to ensure the compliance with the new provisions, companies shall revise their internal policies by 30 September 2017.

By Eszter Kamocsay-Berta, Partner, KCG Partners Law Firm

Hungary Knowledge Partner

DLA Piper is a global law firm with lawyers located in more than 40 countries throughout the Americas, Europe, the Middle East, Africa, and Asia Pacific. This positions us to help clients with their legal needs around the world.

With more than 60 lawyers, including 14 partners, and a staff of over 140, DLA Piper Hungary is one of the largest international law firms operating in Hungary. What makes us stand out is that we offer not only legal services but also tax and business advisory support in a fully integrated manner. We maximize synergies between legal, tax, and business advisory services to offer a unique service for our clients, particularly in regulated industries such as energy, infrastructure, life sciences, banking, and telecommunications.

We are a true full-service firm, providing our private and public sector clients with advice on all aspects of their business. This includes transaction-related advice, people and employment, commercial dealings, litigation, information technology, media and communications, intellectual property, insurance, tax, real estate, and restructuring plans.

DLA Piper Hungary has received numerous professional awards and is consistently ranked among the top law firms in Hungary by international rankings. We are ranked #1 by Mergermarket among the law firms active in Hungary based on the volume of M&A deals handled between 2005 and 2024.

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