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Hungary

Anti-Bribery and Corruption Laws in Hungary

Hungary
Source of law 

Act C of 2012 on the Criminal Code 

(Hungarian Criminal Code) 

Offence 1 There are also special offences relating to bribery in judicial proceedings and influence peddling. In addition, it is also an offence if a public official fails to report bribery of any kind which he / she is aware of.

Corporate Bribery (s290-291 of the Criminal Code) 

Active Corporate Bribery 

Giving or promising an unlawful advantage to a person acting for a Hungarian or foreign company to induce that person to breach his / her duties. 

Passive Corporate Bribery 

Requesting an unlawful advantage by a person acting for a Hungarian or foreign company, or accepting such advantage or a promise thereof, or agreeing with the third party requesting or accepting the advantage. 

Public Bribery (s293-294 of the Criminal Code) 

Active Public Bribery 

Giving or promising an unlawful advantage to a public official or a third person with regard to a public official to unlawfully influence the public official. 

Passive Public Bribery 

Requesting an unlawful advantage by a public official, or accepting such advantage or a promise thereof, or agreeing with the third party requesting or accepting the advantage. 

 

The bribe  
Is there a presumption that the advantage was given/received corruptly? No
Would facilitation payments be caught? 

 

Yes

Would corporate hospitality be caught? Depends on intent 
Is there any de minimis? No 
Does the bribe have to be monetary? No
Public officials  
Does the offence only apply to bribing public officials? Yes 2 Bribery concerning public officials qualify as active and passive public bribery pursuant to Sections 293 and 294 of the Hungarian Criminal Code. The statutory definition of active and passive public bribery is similar to that of active and passive corporate bribery.
Acts performed outside Hungary  
Can bribery performed outside Hungary be caught? Yes 3 Bribery performed outside Hungary is illegal under the Criminal Code if the following conditions are met: the bribery is committed (1) by a Hungarian national, or (2) on a Hungarian ship or aircraft, or (3) by a foreign national and the act is also illegal in the foreign country of performance (to be assessed by the Hungarian General Attorney) (S3 of the Criminal Code).  
Does the act also need to be illegal in the foreign country of performance? No (unless committed by a foreign national) 
Who can be liable?  
Hungarian nationals? 

 

Yes 

Hungarian company? Yes 4  Companies cannot be legally “liable” for a crime but certain criminal sanctions can be imposed on them under the following circumstances: (1) the crime is committed by the relevant natural person intentionally, (2) the crime targeted or resulted in an advantage in favour of the company, and the crime is committed by (3) a director, authorised representative, employee, officer, supervisory board member, manager, or a proxy of the above, as part of the activity of the company, or (4) a member or employee of the company, whose action the director, manager or supervisory board member could have hindered by exercising his / her duties. Sanctions can also be imposed if the crime resulted in an advantage for the company and the director, representative, manager or supervisory board member was aware of the crime. (S2 of the Corporate Sanctions Act).
Hungarian partnership (including limited liability partnerships) incorporated? 

 

Yes 

Director of Hungarian company? Yes 5  The director of a company can be held liable for bribery only if he / she has an active role in the perpetration in her / his capacity as culprit, abettor or accomplice. Negligent acts are not punishable.
Hungarian company if the bribe is committed abroad by its foreign subsidiary? Yes  6 Companies cannot be legally “liable” but certain criminal sanctions can be imposed on them, as outlined in footnote 3. If the bribe is committed abroad by a foreign subsidiary, criminal sanctions may be imposed on the Hungarian parent company if the act fell within the scope of its activity, although this has not yet been tested in practice. In addition, the conditions set out in the Criminal Code must also be met.  
Foreign subsidiary of a Hungarian company if the bribe is committed abroad? Yes 7  A foreign subsidiary of a Hungarian company can be liable in Hungary only if the bribe which is committed abroad is also illegal in the foreign country concerned – to be assessed by the Hungarian General Attorney. See also footnotes 5 and 7.
Foreign national/company/partnership if bribe is committed in Hungary ? Yes 8 Foreign companies and partnerships may be sanctioned in accordance with the Corporate Sanctions Act because its scope does not differentiate between domestic and foreign companies and partnerships. However, such application of the Corporate Sanctions Act has not yet been tested in practice. Enforceability issues may also arise. Still, the criminal actions of performed by a foreign national in the Hungary fall under the territorial scope of the Hungarian Criminal Code and therefore the foreign national can be easily prosecuted in Hungary.  
Foreign national domiciled or “ordinarily resident” in Hungary if bribe is committed outside Hungary ? Yes 9  A foreign national domiciled or “ordinarily resident” in Hungary can be liable only if the bribe which is committed outside Hungary is also illegal in the foreign country concerned – to be assessed by the Hungarian General Attorney.
Foreign company/partnership if bribe is committed abroad? Yes 10 A foreign company / partnership can be liable in Hungary only if the bribe which is committed abroad is also illegal in the foreign country concerned – to be assessed by the Hungarian General Attorney. See also footnotes 5 and 7.  
Penalties  
Penalties include: 
  • Individuals 
  • Imprisonment up to five years in the case of active and up to ten years in the case of passive bribery (may vary depending on the nature and seriousness of the crime) 
  • Companies  (if applicable) 
  • Termination 
  • Restriction of operation (one – three years), including debarment from public contracts or state subsidies 
  • Fine: up to three times the pecuniary advantage gained or intended to be gained from the crime 
  • Confiscation order 
Defences  
Are there any defences available? Yes 11  Before the bribe is detected, a person’s penalty may be alleviated without limits or in some cases the liability may be avoided by providing the authorities with information regarding the bribe and (in case of passive bribery) by surrendering the unlawfully obtained advantage to the authorities.