Comparative Guides

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Financial crime
What provisions govern money laundering and other forms of financial crime in your jurisdiction and what specific implications do these have for fintech companies?
p>AAnswer ... ccording to Act C of 2012 on the Criminal Code, money laundering and the provision of unauthorised financial activities are criminal offences.

Those that engage in money laundering may be punished by imprisonment. Money laundering may be punished if it is committed wilfully or negligently. Fintech companies face the same risks relating to money laundering as financial institutions in general.

Those that provide financial services, investment services, investment fund management services or insurance services without a licence issued by the National Bank of Hungary may be punished by imprisonment. Those that carry on intermediary activities in relation to financial services without a licence or registration may be punished by imprisonment. It is therefore essential that fintech companies to carefully assess whether their planned operations fall under the scope of regulated financial services.

Financial service providers also fall under the scope of the anti-money laundering (AML) regime. The Fifth AML Directive extended the scope of this regime to service providers that exchange virtual currencies for fiat currencies and vice versa, and to custodian wallet providers. The Hungarian legislature transposed the rules of the Fifth AML Directive into national law; however, the provision of exchange services between virtual currencies and fiat currencies is not regulated.

For more information about this answer please contact: Veronika Bakonyi from Gardos Mosonyi Tomori Law Office