Register of final beneficial owners also arrives in Hungary | Dentons
The ultimate beneficial owners (“UBO“) Register (“Register now”) Is introduced, because the 4e and 5e The European anti-money laundering directives have been implemented in Hungary as of May 22, 2021. The UBO register will function as a central database and will be managed by the Hungarian Tax and Customs Authority (“YOUR”).
UBO generally refers to a natural person who directly or indirectly owns or controls at least 25% of a company (other organization, trust or foundation). If there is no such person, then the leader will be considered the UBO. Special definitions apply to UBOs of foundations and trusts.
Data on UBOs must be provided for practically all organizations registered in Hungary.
Data on UBOs must be declared to the TA by the bank of the account holder. The first report is due by June 12, 2021. Going forward, UBOs must notify their businesses of any changes in personal data within 15 days and businesses must update their banks within 5 days. The banks then report regularly to the TA.
From February 2022, law firms, as service providers, are required to perform an AML check and inform the TA if they find that the data of a UBO is significantly different from the data of the UBO register. Such a deviation may lead to an unfavorable change in the TT index of the companies concerned.
The TT index basically indicates the reliability of the data in the UBO register and set at 10 during the first recording. The TT index will decrease by 1 point if a service provider (e.g. law firm, accountant, auditor, trustee, real estate agent, etc.) and by 2 points if an authority, prosecutor, court reports that there is a material inaccuracy in the registered register. The data. If the TT index falls below 8 points, the data will be classified as “uncertain”, and if it falls below 6 points, it will be classified as “unreliable”. An “unreliable” data provider organization will be considered high risk for anti-money laundering purposes and its transactions in excess of HUF 4.5 million (approximately EUR 12,000) will be rejected. Such a classification could also be published on the TA website. If the correct data is communicated to the TA via the bank, the TT index of the data provider organization will again be set to 10 points in the UBO register.
The data of the UBO register are accessible free of charge by
- data provider organizations and their UBOs regarding their own data (from October 2021);
- authorities, prosecutors, courts and supervisory authorities for the performance of their statutory tasks (from February 2022);
- service providers related to their AML screening obligations (from February 2022).
From July 2022, anyone with a legitimate interest and paying a fee will have access to the cabin of the UBO register.
According to current plans, by February 1, 2023, other EU member states will have access to the Hungarian UBO register and Hungarian authorities, courts and service providers (such as law firms) will have access to UBO databases from other Member States.