PEP (Politically Exposed Person) Declaration
In line with the regulation of Section 19 of Act LIII of 2017 on the Prevention and Combating of Money Laundering and Terrorist Financing (AML Act) the customer of the Bank - if a natural person - is required to provide a written statement as to whether he is considered politically exposed - who is entrusted with prominent public functions, or who has been entrusted with prominent public functions within one year before the implementation of customer due diligence measures.
If the natural person customer is a politically exposed person, the statement must also indicate
- the specific definition under which the customer is considered politically exposed.
- information as to the source of funds.
For the purposes of Subsection (2) of Section 4 of AML Act, ‘natural person who has been entrusted with prominent public functions’ shall include:
- heads of State, heads of government, ministers and deputy ministers, state secretaries, in Hungary the head of State, the Prime Minister, ministers and state secretaries;
- members of parliament or of similar legislative bodies, in Hungary members of parliament and spokesmen for the nationality;
- members of the governing bodies of political parties, in Hungary members and officers of the governing bodies of political parties;
- members of supreme courts, of constitutional courts or of other high-level judicial bodies, the decisions of which are not subject to further appeal, in Hungary members of the Alkotmánybíróság (Constitutional Court), of the courts of appeal and the Kúria (Curia);
- members of courts of auditors or of the boards of central banks, in Hungary the President and Vice-President of the Állami Számvevőszék (State Audit Office), members of the Monetáris Tanács (Monetary Council) and the Pénzügyi Stabilitási Tanács (Financial Stability Board);
- ambassadors, chargés d’affaires and high-ranking officers in the armed forces, in Hungary the head of the central body of law enforcement bodies and organizations and his deputy, Chief of Staff of the Hungarian Army and Deputy Chiefs of Staff of the Hungarian Army;
- members of the administrative, management or supervisory bodies of enterprises with majority state ownership, in Hungary the managing directors of enterprises with majority state ownership, including members of the management body exercising control or supervisory rights of such enterprises;
- directors, deputy directors and members of the board or equivalent function of an international organization.
The provisions of AML Act relating to politically exposed persons shall also apply to family members or persons known to be close associates of politically exposed persons.
For the purposes of AML Act ‘family members of politically exposed person’ shall include the spouse or domestic partner of a politically exposed person; the biological and adopted children, stepchildren and foster children and
their spouses or domestic partners, of a politically exposed person; the biological, adoptive, step- and foster parents of a politically exposed person.
For the purposes of AML Act, persons known to be close associates of politically exposed persons shall include:
a) any natural person who is known to have joint beneficial ownership of legal entities or unincorporated organizations, or any other close business relations, with a politically exposed person
b) any natural person who has sole beneficial ownership of a legal entity or unincorporated organization which is known to have been set up for the benefit of a politically exposed person
On risk based approach the Hungarian politically exposed persons shall include those legal entity or organization without legal personality whose beneficial owner is politically exposed.