Name
Global FinTech Guide
Country _ Name
Hungary
SectionTitle
KYC requirements
Body
The know your customer or know your client (KYC) guidelines and regulations for financial services require that professionals try to verify the identity, suitability, and risks involved with maintaining a business relationship.

Legal affairs

National regulatory framework regarding AML and effective date of the regulations

The AML Act is based on the AML4 and AML5 Directives (Act LIII of 2017) and entered into force on 26 June 2017.

National regulator or relevant authority for AML controls

The regulator regarding the financial sector is the Hungarian National Bank.

Customer Due Diligence

Conduct of a typical KYC identification process

The legal provisions on the identification process are fully harmonised with the relevant EU directives. While face-to-face identification is the common practice, Hungarian law has also developed processes for identification via electronic means.

Possibility to meet customer due diligence requirements by relying on third parties who are obliged by law themselves to comply with AML regulations

Yes.

Possibility to outsource customer due diligence by contract to other third parties who are not obliged by law to meet AML regulations and rely on these (e.g., WebID, IDnow, PostIdent)

N/A.

Presence of a license or registration requirement for the third party in case of outsourcing customer due diligence

N/A.

Further questions

Entities that could be relied on specifically by law as a third party to comply with AML regulations (regardless of outsourcing)


Yes credit institutions
Yes financial institutions
Yes auditors, external accountants, and tax advisors
Yes notaries and other independent legal professionals
Yes other trust or company service providers
Yes estate agents
Yes other persons trading high-value goods
Yes providers of gambling services


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