Hungary: Start date of transparency register uncertain
Hungary’s new act on the prevention of money laundering (AML Act) entered into force on 26 June 2017. The act includes provisions on establishing a central register of ultimate beneficial owners (transparency register).
By including this provision in the AML Act, Hungary fulfilled its obligation to implement relevant measures into member state law based on Art. 30 of the AML Directive (Directive (EU) 2015/849 of 20 May 2015). The Hungarian government set a deadline for the start of the transparency register for 1 January 2019.
Whereas in other member states within and outside the CEE region – such as the Czech Republic, Estonia, Germany, Slovakia – the central register was set up, 10 months after the deadline, there is still no sign of a start in Hungary. The reasons for the delay are undisclosed.
The transparency register strengthens corporate transparency, and will become a key factor in tracing money laundering activity. Registration of ultimate beneficial owners will be carried out by certain service providers – such as bnt – based on information provided by their corporate clients.
For now, clients have no immediate responsibilities with regard to registration. It is worth noting, though, that registration will have to be carried out in the near future in Hungary as well. Therefore, the service providers concerned can contact companies with data requests.
Source: Act LIII of 2017 - on the Prevention and Combating of Money Laundering and Terrorist Financing
Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing