Fighting money-laundering and terrorism financing
Complying with legal regulations, K&H Bank makes every effort to ensure that criminals do not use the Bank for the purposes of money-laundering and terrorism financing. To ensure conformity with legal regulations, the Bank operates a Compliance organisation where a dedicated department works to prevent money-laundering and terrorism financing.
Money-laundering means that criminals try to use the services of financial institutions to hide funds derived from criminal activities. Terrorist funds, on the other hand, often come from legitimate sources and are used to support act of terrorism.
In accordance with Act no. 136/2007 on the Prevention of Money-laundering and Terrorism Financing, K&H Bank operates verification and reporting system to prevent banking and financial transactions allowing for or assisting money-laundering. The Bank cooperates with law enforcement agencies in identifying all suspected money-laundering or terrorism financing cases.
Pursuant to Act no. 136/2007, Finance Ministry Decree 35/2007. (12.29.) and the recommendation of the Hungarian Financial Supervisory Authority, K&H Bank operates internal procedures that are binding on all employees. The Bank's regulations are in full compliance with the FATF 40+9 recommendations, the European Parliament’s and Council’s directive 2005/60EC of October 26, 2005, and regulation no. 1781/2006/EC. The declarations required for compliance with international regulations are available on the Bank's website.
The employees of K&H Bank are obliged to screen clients and submit the relevant reports.
In respect to our clients, we would like to strongly emphasise the following:
According to the relevant Hungarian legal regulations, a CDD (customer due diligence) procedure is obligatory in the legally defined cases, particularly upon the establishment of a client relationship, or for cash transactions equal or in excess of HUF 3.6 million, and in case of currency conversion above the equivalent of HUF 500 000, regardless of the type of currency involved.
In order to meet these requirements, we kindly ask our clients to present valid identification documents.
According to the above-mentioned Act, the Bank is also required to ask clients for a written declaration stating that, when performing various bank transactions, they act in the name, on behalf of, or in the interest of their own or another beneficiary owner (natural or legal person.
Our clients living abroad must also state whether they are considered a Politically Exposed Person (PEP). The time needed for the administrative procedure can be reduced substantially if you download from our website and complete the required appendices in advance.
If the data you provided earlier (including the existing beneficiary owner’s declaration) have changed, please meet your legal obligation and report the changes by notifying us or visiting a K&H branch within five work days.
- PEP declaration and beneficial owner statement for natural person clients (PDF,255 KB)
- Beneficial owner statement for legal entities (PDF,194 KB)
- PEP declaration and beneficial owner statement for occasional customers (PDF,242 KB)
- PEP declaration for associated natural person (PDF,242 KB)
- Patriot Act (PDF,186 KB)
- Wolfsberg (PDF,321 KB)