How Will the New EU Anti-Money Laundering Regulation Affect Company Formation in Hungary?

The new EU Anti-Money Laundering Regulation (Regulation (EU) 2024/1624, AMLR) will apply directly in all Member States from 10 July 2027, including Hungary. This regulation fundamentally reshapes the rules for identifying and verifying ultimate beneficial owners (UBOs), which will significantly affect the formation and operation of Hungarian companies.

Key Changes in Determining Ultimate Beneficial Ownership

The regulation redefines how ultimate beneficial owners of legal entities and entities without legal personality are identified. It replaces the previously directive-based framework with a directly applicable regulation, thus harmonizing EU practice.

Under the new rules, an ultimate beneficial owner is defined as any natural person who directly or indirectly holds at least 25% ownership interest or voting rights in a company or otherwise exercises effective control over it.

The calculation of indirect ownership chains will now be based on multiplication. For example, if a natural person holds an indirect share of 30% through several companies, they are clearly classified as a beneficial owner. The new, more detailed and technically stricter calculation methods aim to enhance transparency and uncover hidden ownership structures.

Practical Consequences of Direct Applicability

As the AMLR is directly applicable, there is no need for transposition into national law – the provisions will automatically become part of the Hungarian corporate legal framework. Hungarian authorities, including the company registry court, the tax authority (NAV), and financial service providers, must comply with the regulation from 10 July 2027.

This also affects declarations submitted during company formation: beneficial ownership data must be defined and verified precisely in accordance with the regulation’s logic. AMLR emphasizes that central registers (e.g., the Hungarian company database) alone are insufficient – verification of UBO data must be based on multiple sources, such as electronic identification under the eIDAS Regulation or reliable documentation.

Steps Before Company Formation

Reviewing Hungarian corporate structures is essential in light of the new requirements. Company groups operating with multi-level ownership chains will particularly require detailed due diligence to identify UBOs using the new calculation methods.

Compliance with the new regulation is not only a legal issue but also a practical one. It is advisable to consult with a law firm and compliance advisor now to ensure that companies meet all AMLR expectations by the 2027 effective date.

—

🧾 Meta Description:

How will Hungarian company formation change under the new EU AML Regulation? Learn about new UBO identification and data reporting rules.

—

🔑 Keywords:

Hungarian company formation

ultimate beneficial owner identification

EU Anti-Money Laundering Regulation

AMLR 2024/1624

corporate law changes 2027

directly applicable EU regulation

beneficial ownership control

Hungarian company structure compliance

corporate due diligence under EU rules

AML rules in Hungary

client identification for legal entities

new EU AML rules for company formation

Hungarian company ownership registry

UBO reporting obligation

Hungarian business compliance with AMLR

Dr. Géza Katona, LL.M., attorney at law (Rechtsanwalt / attorney at law)

—

Dr. Katona Géza, LL.M. ügyvéd (Rechtsanwalt / attorney at law)

___________________________________

Katona és Társai Ügyvédi Társulás

(Katona & Partner Rechtsanwaltssozietät / Attorneys’ Association)

H-1106 Budapest, Tündérfürt utca 4.

Tel.: +36 1 225 25 30