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Moneyval notes progress in tackling money laundering, terrorist financing

Analysis

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Moneyval said that as a result of Hungaryʼs progress in strengthening its framework to tackle money laundering and terrorist financing, it has decided to re-rate the country on one Recommendation of the Financial Action Task Force (FATF) originally rated as "partially compliant".

The press release by Moneyval said that Hungary was placed in an enhanced follow-up process, following the adoption of its mutual evaluation report, which assessed the effectiveness of its anti-money laundering and counter-terrorist financing (AML/CFT) measures and compliance with the FATF Recommendations.

In line with Moneyval’s rules of procedure, Hungary has reported back to the body on the progress it has made to strengthen its AML/CFT framework.

To reflect progress in addressing the technical compliance deficiencies identified in the mutual evaluation report, the body decided to re-rated Hungary upwards on Recommendation 33 (statistics).

Originally, four years ago, Hungary was rated as "partially compliant" due to significant shortcomings remaining in relation to the collection and maintenance of relevant statistical information/data on matters relevant to the effectiveness and efficiency of its anti-money laundering and counter-terrorist financing system, Moneyval says.

According to the progress report of December 2018, Hungarian authorities have undertaken a comprehensive review of the criminal statistics system. In 2019, the Hungarian authorities informed Moneyval that figures on money laundering/financing of terrorism investigations and prosecutions, as well as statistics on frozen, seized and confiscated property are collected and maintained in a comprehensive manner.

The body, therefore, decided to re-rate this Recommendation as "largely compliant".

Moneyvalʼs follow-up report also looks at progress made in the implementation of new requirements relating to Recommendation 2 (national cooperation and coordination) which has changed since Hungary’s last follow-up report was adopted. The rating for this Recommendation remains unchanged.

Hungary is "compliant" on six of the 40 FATF Recommendations and "largely compliant" on 28 of them. It remains "partially compliant" on six of the 40 FATF Recommendations.

The body decided to keep Hungary in the enhanced follow-up process.

Moneyval (Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism) is a monitoring body of the Council of Europe.

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