OTP Bank, the largest commercial lender in Hungary and a prominent financial institution in Central and Eastern Europe, was fined HUF 28 million (EUR 67,535). MBH Bank, the second-largest commercial bank in Hungary, received a penalty of HUF 15 million (EUR 36,180).
The penalties stem from supervisory decisions made by the MNB between late 2023 and early 2024. These decisions required both banks to rectify identified AML/CTF deficiencies by August 2024. However, a recent review revealed that the measures had not been fully implemented, prompting the central bank to impose the fines.
Specific compliance failures were cited for each institution. OTP Bank was penalized for incomplete retrospective screenings, shortcomings in customer due diligence processes, and weaknesses in its internal controls and audit mechanisms. MBH Bank’s fine was attributed to outdated internal regulations, inadequate staffing for transaction monitoring, and gaps in verifying the source of funds.
Despite the shortcomings, the MNB noted that these deficiencies do not currently endanger the safe operation of either institution. However, the central bank stressed the urgency of addressing the issues to ensure compliance with regulatory standards.
The fines serve as a reminder of the heightened regulatory scrutiny faced by financial institutions operating in Hungary. Both OTP Bank and MBH Bank are expected to act swiftly to align with the country’s stringent AML/CTF requirements.
As the financial sector continues to evolve, compliance with these regulations remains a critical priority for maintaining trust and ensuring the integrity of the banking system.
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