Hungary Country Summary

FATF Status

Hungary is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest follow up to the Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Hungary was undertaken in 2024. According to that Evaluation, Hungary was deemed Compliant for 5 and Largely Compliant for 33 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 2 of the Effectiveness ratings.

Hungary faces significant challenges related to crime and corruption, with a notable presence of organized crime, human trafficking, and financial misconduct. While the government has established legal frameworks and international commitments to combat corruption, concerns persist regarding the effectiveness of enforcement and the independence of judicial institutions, compounded by a political environment that limits civil society's role in addressing these issues.

Hungary's economy is characterized by its strategic location in Europe, high-quality infrastructure, and a favorable corporate tax rate of 9%, which attracts significant Foreign Direct Investment (FDI). Despite a modest GDP growth of 0.6% in 2024, the country grapples with high inflation rates and a budget deficit that exceeded government targets, highlighting economic challenges amid efforts to diversify investment sources, particularly from Asia. The government actively engages with foreign investors through various initiatives, although concerns about regulatory unpredictability and legislative transparency persist, impacting the overall investment climate.