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Changes in Corporate Criminal Liability in Hungary: Plea Deals for Companies

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Starting next year, the rules on corporate criminal liability in Hungary will undergo significant reforms aimed at making companies' participation in criminal proceedings more effective, predictable and proactive. Among the most notable innovations is the introduction of plea deals for companies, intended to enhance both accountability and cooperation between companies and criminal authorities.

Corporate responsibility for criminal offences

The growing prevalence of organised crime has highlighted the need for more robust measures to hold companies accountable when crimes are committed using corporate structures. Thus, in the case of certain criminal offences such as fraud, bribery or money laundering, not only the individual perpetrator but also the company involved – or being used – can be held criminally liable.

What is a plea deal?

From next year onwards, a company subject to criminal proceedings will be able to enter into an agreement – commonly referred to as a "plea deal" – with the prosecution.

At present, such agreements are only available to individual perpetrators, leaving companies in a passive defensive role rather than enabling them to actively cooperate with the authorities. Furthermore, an individual perpetrator cannot negotiate on behalf of the company, even indirectly. For example, an individual cannot offer to disclose the details of the offence in exchange for the company repaying the damage caused by the criminal action. This is particularly problematic, as in most corporate crimes, the financial benefit is realised by the company itself – such as in cases of tax evasion or corrupt procurement practices. Excluding companies from the possibility of voluntary restitution is therefore illogical.

The new reforms address this anomaly, allowing companies to enter into agreements with the prosecution.

Conditions for plea deals

A company may enter a plea deal if it acknowledges its involvement in the criminal offence and undertakes to compensate the damage caused, restore any harmful consequences or surrender any illicit gains to the authorities. The company must also ensure that no repeat offences occur. Another requirement is that the company must cooperate with the authorities by providing all necessary information, data, documents and other evidence, as well as paying the agreed funds.

If the company's representative (e.g. the managing director) is also an accused in the criminal proceedings, a plea deal will only be possible if they admit to the offence. A safeguard is also in place: a company that enters into an agreement with the prosecution cannot be dissolved, and any other sanctions may only be imposed to the extent specified in the agreement.

Opportunities for cooperation

Cooperation will not be limited to the investigative stage. Even if the investigation has concluded and the case is already before the criminal court, the company will still have the opportunity to enter into an agreement during the preparatory hearing. In such cases, the matter may be resolved at an early stage.

Ongoing proceedings

The new rules, which will come into effect on 1 January 2026, will – subject to certain exceptions – also apply to ongoing criminal proceedings. As a result, companies already under criminal investigation will also be affected by these reforms, encouraging them to take a more active role in criminal proceedings when it comes to defence, cooperation, voluntary restitution and plea deals.

By Alexandra Bognar, Attorney at Law, and Noemi Suller, Associate, Schoenherr

Hungary Knowledge Partner

DLA Piper is a global law firm with lawyers located in more than 40 countries throughout the Americas, Europe, the Middle East, Africa, and Asia Pacific. This positions us to help clients with their legal needs around the world.

With more than 60 lawyers, including 14 partners, and a staff of over 140, DLA Piper Hungary is one of the largest international law firms operating in Hungary. What makes us stand out is that we offer not only legal services but also tax and business advisory support in a fully integrated manner. We maximize synergies between legal, tax, and business advisory services to offer a unique service for our clients, particularly in regulated industries such as energy, infrastructure, life sciences, banking, and telecommunications.

We are a true full-service firm, providing our private and public sector clients with advice on all aspects of their business. This includes transaction-related advice, people and employment, commercial dealings, litigation, information technology, media and communications, intellectual property, insurance, tax, real estate, and restructuring plans.

DLA Piper Hungary has received numerous professional awards and is consistently ranked among the top law firms in Hungary by international rankings. We are ranked #1 by Mergermarket among the law firms active in Hungary based on the volume of M&A deals handled between 2005 and 2024.

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