DEADLINE EXTENSION FOR BANK CLIENT IDENTIFICATION

DEADLINE EXTENSION FOR BANK CLIENT IDENTIFICATION

18/Jul/2019

In our newsletter, we would like to introduce the amendment of Act LIII of 2017 on the Prevention and Combating of Money Laundering and Terrorist Financing (the Act), which provides that the concerned organizations and financial institutions have received a grace period for client identification.

The service providers (banks, credit institutions, etc.), subject to the previous regulations of the Act, were mandated to fulfill their obligation until the original deadline, that is by 26 June 2019 to provide client identification with regards to all their clients. Prior to the expiry of the deadline, the Hungarian Banking Association informed the Hungarian Government that in the case of numerous service providers this identification procedure had not been fully completed. The Hungarian Parliament reacted to the problem as a matter of urgency: according to the new amendment of the Act, the new deadline for identification is 31 October 2019. After the entry into force of the amendment on 25 June 2019, the service providers had three business days to inform their affected clients if the client audit procedures had not been conducted yet or the audits were incomplete.

Based on the above, we suggest cooperating with the concerned financial institutions.

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This summary is intended to raise awareness and does not constitute legal advice.

If you have any questions or need further information, please do not hesitate to contact us.

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