Anti-money laundering rules – extended deadline

As already mentioned in our earlier newsletters, the Act on Anti-Money Laundering (“Act”) came into force on 26 June 2017. Based on transitional rules, service providers falling under the Act (i.e. financial institutions, lawyers, tax advisors etc.) should have carried out the due diligence of their clients under the new rules by 26 June 2019.  Before the expiry of the deadline, the Hungarian Banking Association has notified the Government that the client identification was incomplete or missing in many cases. Therefore, on 25 June 2019, the Hungarian Parliament passed a bill which extended the above deadline to 31 October 2019.  According to the amendment, service providers should inform their clients within 3 days from the entry into force of the amendment if the client identification is missing or incomplete.

OrienTax, as a service provider falling under the Act will directly contact those clients who should meet this obligation.