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Provisions on the Hungarian Register of Ultimate Beneficial Owners in Effect

Provisions on the Hungarian Register of Ultimate Beneficial Owners in Effect

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The Hungarian register of ultimate beneficial owners contains the data of the data providers falling under the scope of the act ruling the register of ultimate beneficial owners, for instance limited liability companies, public limited companies, associations, foundations or notary offices.

On 1 February 2022, further provisions of the act entered into force. From this date, in order to perform its statutory tasks, the authority, the prosecutor’s office, the court and the supervisory authority may disclose information obtained from the register of the ultimate beneficial owners (a) to an authority, prosecutor's office, court or supervisory authority of another Member State of the European Union and (b) under certain conditions, to an authority, prosecutor's office, court or supervisory authority of a third country.

In addition, from the above date, service providers under the Money Laundering Act (e.g. credit institutions, financial service providers, auditors or attorneys-at-law) may access, free of charge, the data of data providers stored in the register of ultimate beneficial owners in order to fulfil their customer due diligence measures or data verification obligations.

From 1 February 2022, in case the authority, the prosecutor’s office, the court or the supervisory authority detects a discrepancy between the ultimate beneficial ownership data known to them and the ultimate beneficial ownership data recorded in the register, they state the data known to them in a notification. The service providers must also notify the registry body if they record data other than those stored in the register of ultimate beneficial owners. These notifications reduce the so-called TT index of data providers, which is an indicator of the level of confidence of the data providers’ ultimate beneficial ownership data in the register of ultimate beneficial owners, with a value between 1 and 10. If the value of the TT index due to the notifications of deviations falls below 8 points, the data provider’s ultimate beneficial ownership data is classified as “uncertain”, and if it falls below 6 points, the data provider’s ultimate beneficial ownership data is classified as “unreliable”. However, in case following the information of the registry body, the data provider confirms or modifies its ultimate beneficial ownership data, the registry body will adjust the value of the TT index to 10 points.

By Lidia Suveges, Attorney at law, KCG Partners Law Firm

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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