Hungary

Global sanctions guide

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  1. Does Hungary have a sanctions regime in place? 

Yes.

  1. Does Hungary implement UN sanctions? 

Yes. Hungary is a member of the European Union, which implements UN sanctions in all member states by way of directly effective regulations.

  1. Does Hungary implement an autonomous sanctions regime? 

Yes. The Hungarian procedure for dealing with persons and entities subject to EU sanctions is set out in Act No. CLXXX of 2007 “On the Implementation of Financial and Asset-Related Restrictions Ordered by the European Union”. Licensing for imports, exports, transfers and transits of military equipment and services is governed by Government Decree No. 160/2011. Licensing for dual-use goods is governed by Government Decree No. 13/2011. Money laundering and other sanctions provisions are dealt with by Act CXXXVI of 2007 “On the Prevention and Combatting of Money Laundering and Terrorist Financing” and Act I of 2007 “On the Admission and Residence of Persons with the Right of Free Movement and Residence”.

  1. What is the nature of the sanctions regime in Hungary? 

Hungary follows the restrictive measures laid down by the UN, the EU and other international organisations which are binding on Hungary, as well as measures introduced autonomously to complement the international sanctions regime. Such autonomous measures are implemented by legislative acts and government decrees.

  1. Does Hungary maintain a list of sanctioned individuals and entities? 

No. Hungary relies on the UN and EU sanctions lists.

  1. Are there any other lists related to sanctions? 

No.

  1. Does Hungary have a licensing or authorisation system in place? 

Yes. The court may grant exemptions to financial and asset-related restrictions (Section 6 of Act No. CLXXX of 2007). The Authority of Defence Industry and Export Control (part of the Hungarian Trade Licensing Office) may grant authorisations in relation to arms embargoes and dual-use products, provided conditions set forth in the relevant sanctions are met.

  1. What are the consequences for a breach of sanctions in Hungary? 

Certain breaches of sanctions carry criminal liability, including:

  • criminal offences with weapons prohibited by international convention
  • violation of international economic restrictions
  • failure to report a violation of international restrictions, criminal offences with military items and services, and criminal offences with dual use goods

The consequences of such criminal breaches are fines, imprisonment and/or deportation.

  1. Who are the relevant regulators in Hungary and what are their contact details?

The Authority of Defence Industry and Export Controls (part of the Hungarian Trade Licencing Office) is responsible for arms embargoes and dual-use goods.

Hungarian Trade Licensing Office
Authority of Defence Industry and Export Controls
Magyar Kereskedelmi Engedélyezési Hivatal
Haditechnikai és Exportellenőrési Hatóság
Németvölgyi út 37-39
1124 Budapest
Hungary

T: (+36) 1 4585 583
F: (+36) 1 4585 869
E: eei@mkeh.gov.hu
www.mkeh.gov.hu (Hungarian language only)

The Anti-Money Laundering Information Office (part of the National Tax and Customs Administration) is responsible for financial and asset-related restrictions.

National Tax and Customs Administration
Széchenyi u. 2
H-1054 Budapest
Hungary

T: (+36) 1 430 94 66
F: (+36) 1 430 93 05
E: fiu@nav.gov.hu
http://en.nav.gov.hu/

The Office of Immigration and Nationality is responsible for restrictions on movement.

Office of Immigration and Nationality
60 Budafoki Street
1117 Budapest Pf. 314
Hungary

T: (+36) 1 463 91 00
F: (+36) 1 463 91 08
E: nef@bah.b-m.hu
http://www.bmbah.hu/index.php?lang=en

 

Contributor law firm

Dr. Szent-Ivány Ágnes, Sándor Szegedi Szent-Ivány Komáromi Eversheds, H-1026 Budapest, Pasaréti út 59 (premises) H-1530 Budapest, P.O. Box 23 (postal) Hungary