Hungary's progress in strengthening measures to tackle money laundering and terrorist financing

Publication details




MONEYVAL's Follow-Up Report of Hungary-2017

1 MB

Hungary's progress in strengthening measures to tackle money laundering and terrorist financing

As a result of Hungary’s progress in strengthening its framework to tackle money laundering and terrorist financing since its mutual evaluation in September 2016, MONEYVAL has re-rated the country on 13 of the 40 Recommendations.

Hungary has been in an enhanced follow-up process, following the adoption of its mutual evaluation, which assessed the effectiveness of Hungary’s anti-money laundering and counter-terrorist financing (AML/CFT) measures and their compliance with the Recommendations by the Financial Action Task Force (FATF). In line with the MONEYVAL’s rules of procedure, the country has reported back to MONEYVAL on the progress it has made to strengthen its AML/CFT framework.

This report analyses Hungary’s progress in addressing the technical compliance deficiencies identified in the mutual evaluation report. The report also looks at whether Hungary has implemented new measures to meet the requirements of FATF Recommendations that have changed since the country’s 2016 mutual evaluation.

To reflect this progress, MONEYVAL has re-rated Hungary on Recommendations 1, 2, 6, 7, 10, 16, 19, 22, 23, 25, 34 and 35. These Recommendations are now re-rated as “largely compliant”. Recommendation 15 has been re-rated as “compliant”.

MONEYVAL welcomed progress made on Recommendations 12, 13, 18, 24 and 28, but considered that shortcomings (which are more than just minor ones) remain. Consequently, the ratings for these Recommendations remain “partially compliant”. Recommendations 5 and 8, the requirements of which changed since Hungary’s evaluation in 2016, remain “partially compliant”.

MONEYVAL decided that Hungary should remain in enhanced follow-up and next report back in December 2018 as per Rule 23, paragraph 1 of MONEYVAL’s 5th round rules of procedure.

The findings of the follow-up report have also been reviewed and endorsed by the FATF.