1.  Please give details of any existing national legislation in your country that is specifically relevant regarding the obligations and limitations for LVMH shop assistants dealing with cash payments?
  2. Are there any changes or developments expected in the near future?
  3. Is there a maximum amount of cash a customer may use to purchase items in a store in your country? If yes, what is the amount?
  4.  Are there any limitations in your country with regard to the acceptance of denominations of [euro] banknotes?
  5.  Are there any rules in your country on partial and/or related cash payments and is it clear what can or will be seen as a partial and/or related payment?
  6.  Is there a duty to report to an authority if a customer would like to pay in cash above the maximum amount and/or with a denomination of a banknote which is forbidden?
  7.  What are the competent authorities which oversee the enforcement of the relevant legislation?
  8. If there is a duty to report, what is the competent authority to report to and what are the relevant responsibilities of LVMH in that respect?
  9.  What sanctions do the authorities have at their disposal to make sure that companies comply with the rules?
  10.  Are there any other relevant developments or issues regarding this matter, of which LVMH should be aware (e.g. privacy issues)?

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Hungary
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1. Please give details of any existing national legislation in your country that is specifically relevant regarding the obligations and limitations for LVMH shop assistants dealing with cash payments?

The relevant laws in Hungary are:

  • Act LIII of 2017 on the Prevention of Money Laundering and Terrorist Financing (the “AML Act”), which is the Hungarian law based upon the Fifth European Anti-money Laundering Directive (Directive (EU) 2018/843);
  • Act CXXXIX of 2013 on the Central Bank of Hungary; and
  • Act CL of 2017 on Taxation (the “Taxation Act”).

2. Are there any changes or developments expected in the near future?

No.

3. Is there a maximum amount of cash a customer may use to purchase items in a store in your country? If yes, what is the amount?

Yes.

Under the AML Act, until a merchant dealing with the sale of goods undertakes with the competent authority that it is complying with the AML Act and until this merchant is registered by the authority, the maximum amount of cash this merchant's customer may use for payment in Hungary must be less than HUF 3 million (approximately EUR 8,380). 

Under the Taxation Act, in the relationship of two corporate entities, the monthly cash payments between such entities cannot exceed HUF 1.5 million.

4. Are there any limitations in your country with regard to the acceptance of denominations of [euro] banknotes?

In respect to a payment under a transaction, merchants in Hungary are: (a) obliged to accept HUF banknotes; (b) not obliged to but may accept EUR banknotes or coins; and (c) not obliged to but may accept more than HUF 50 coins.

Yes.

The restrictions specified in the AML Act also relate to transactional orders, which are factually linked. These are transactions in which the same customer gives an order within one year on the same legal title and for the same subject matter.

6. Is there a duty to report to an authority if a customer would like to pay in cash above the maximum amount and/or with a denomination of a banknote which is forbidden?

Yes.

Under the AML Act, if the merchant suspects that the cash payment relates to money laundering, terrorist financing or any other crime, the transaction must be reported to the Financial Intelligence Unit Hungary (the “FIU”).

Under the Taxation Act, in the relationship of two corporate entities, if the monthly cash payments between these entities exceed HUF 1.5 million, this must be reported to the Tax Authority.

7. What are the competent authorities which oversee the enforcement of the relevant legislation?

The FIU is the central body in Hungary responsible for preventing and combating money laundering and terrorist financing. Additionally, the following bodies are responsible for the supervision and enforcement of anti-money laundering rules: the Central Bank of Hungary and the various professional chambers, such as the Hungarian Chamber of Commerce.

8. If there is a duty to report, what is the competent authority to report to and what are the relevant responsibilities of LVMH in that respect?

Under the AML Act, there is a duty to report unusual transactions in Hungary. The competent authority to report to is the FIU.  The client must provide the following information to the FIU:

  1. The identity of the client, the beneficial owners and, as far as possible, the person on whose behalf the transaction is being carried out;
  2. The nature and number of the client’s identity document and, insofar as possible, of the other persons referred to under point "a".;
  3. The nature, time and place of the transaction;
  4. The amount, destination and origin of the money, securities, precious metals or other valuables involved in the transaction;
  5. The circumstances why the transaction is classified as unusual;
  6. A description of the relevant items of great value in a transaction in excess of HUF 300,000.

9. What sanctions do the authorities have at their disposal to make sure that companies comply with the rules?

The sanctions available to the FIU to make sure that companies comply with the rules of the AML Act. The FIU can hand down to an institution, which does not comply with the rules:  

  1. a direction to comply with the legislation;
  2. a suspension or revocation of the mandate of the managing director of the company;
  3. a direction to train the managers and/or the employees of the company or to employ new competent staff members;
  4. a cease and desist order;
  5. an administrative fine.

The Tax Authority may impose a fine. 

10. Are there any other relevant developments or issues regarding this matter, of which LVMH should be aware (e.g. privacy issues)?

No.