Tens of Thousands Worry as Account ID Compliance Deadline Ends Today
Péter Cseresnyés 2019.10.31.
The deadline for account ID compliance expires today. Bank clients who opened accounts before June 27, 2017, must provide documents verifying their identity. Businesses also have to authenticate themselves by submitting evidence showing proof of business ownership. The banks have already notified those of their clients who need to provide data.
The verification of the documents is required due to the stricter rules preventing and combating money laundering and terrorist financing that came into force in June 27, 2017.
Bank clients who opened accounts before this date must provide copies of personal identification and proof of residence documents, as well as personal information, and make a declaration if they are a politically exposed person to their banks by midnight.
Those who fail to comply with the new rules by the deadline will not be able to carry out transactions using their accounts until they eventually provide the required documents to their banks.
Levente Kovács, secretary general of the Hungarian Banking Association, said in early September that about half a million retail and nearly 150,000 corporate customers had not yet complied. This represents 5% of retail accounts and 10-15% of corporate customers, he explained.
Earlier this year the Hungarian Banking Association requested the deadline for account ID compliance to be pushed back. On June 25th, Parliament amended the relevant legislation, postponing the deadline for data verification by four months, until October 31st.