Pursuant to the currently effective wording of the Hungarian Act, legal entities are not required to directly submit information to a central register regarding their UBO. However, in the event such entities want to engage in a business relationship with certain service providers (e.g. financial institutions, insurance companies, auditing firms, etc.) they will be required in certain cases to provide certain information to the service providers in accordance with the Hungarian Act as part of the service providers' customer due diligence. Such due diligence will include customer identification and verification procedures, including the identification and verification of the customer’s agent, proxy or other authorised representative. In the context of customer due diligence, customers are required to provide information regarding their UBOs as well. The collected and recorded data on the UBOs of customers (legal persons, unincorporated organisations and fiduciary managers) will then be forwarded to the central register by the service provider (details of which are to be regulated in a separate Act that has yet to be adopted), provided such data is not already recorded in the central register.
According to an upcoming modification of the Hungarian Act, effective as of 1 June 2021, it will be not the service provider but the legal entity itself which shall perform the notification with respect to its UBO to the Transparency Register within five business days following the commencement of its activities. With regard to already existing legal entities, there is no clear deadline for the initial filing. The current wording of the Hungarian Act contains a reference in its closing provisions to the effect that service providers who are already operating shall make notification to the Transparency Register by 1 March 2021; however, it has not yet been clarified how such notifications shall be made. We assume that the exact rules of the notification obligation of existing legal entities will be regulated in the separate Act, yet to be adopted.
After registration in the Transparency Register, if any change occurs in the person of its UBO, the legal entity must notify the Transparency Register regarding such change within 5 business days following its occurrence. If the service provider, when performing its customer due diligence, notices any discrepancy between the data provided to it and the data registered in the Transparency Register, it must notify the authority that keeps the Transparency Register thereof.