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Account ID compliance deadline pushed back to October 31

Parliament on Tuesday voted to push back the deadline for complying with stricter rules on identifying bank account ownership from July 26 to October 31, state news wire MTI reported.

The Hungarian Banking Association earlier requested the compliance deadline be pushed back to September 30, but Minister of Finance Mihály Varga submitted the bill on the extension with a deadline of August 31. However, Parliamentʼs legislative committee made a last-minute modification to the bill making the deadline October 31, to ensure "all of those affected, without exception, may comply with the legal requirements."

Lawmakers approved the legislation, in an expedited procedure, with a vote of 156 for and 1 against.

Bank clients who opened accounts before June 27, 2017, when stricter rules to prevent money laundering and the financing of terrorism came into force, must provide copies of personal identification and proof of residence documents, as well as personal information, to their banks. Clients must also make a declaration if they are a politically exposed person.

In the case of corporate clients, documents showing proof of business ownership must be resubmitted.

Clients who fail to comply with the new rules by the deadline will not be able to carry out transactions using their accounts.

The Hungarian Banking Association on Wednesday welcomed lawmakersʼ decision to push back the deadline, but urged clients to reconcile their data with banks as soon as possible. The association said an information campaign on compliance with the rules would continue and warned clients against putting off data reconciliation.