The Beneficial Owner Declaration are now available

The Beneficial Owner Declaration have recently been made available, which allow companies subject to money laundering obligations to check the real ownership details provided by their customers.

To access the records, you must first register at the National Tax and Customs Office (NAV). This registration can be done using the AFADREG form. The registration form must be sent to the National Tax and Customs Office online address of the organisation initiating the registration.

The form can be downloaded from the NAV official website: https://nav.gov.hu/penzmosas

When registering, you must provide the details of the provider company and of the person or persons who may later require information from the actual ownership records. The data to which access is requested must also be specified here. The service providers can only request to know the data of the Beneficial Owners.

After registration, the person entitled to access the data in the database must indicate his/her wish to access the data using e-Paper. The access is personal, therefore the request indicated on the e-Paper must be sent to the NAV from the authorised person's KÜNY storage (Client Portal storage).

Therefore, only registered persons can request data from the NAV.

An additional task for service providers will be to report a discrepancy if they detect a significant difference between the Beneficial Owner Declaration data they know and the actual ownership data recorded in the actual ownership records. A specially designed form (TTNYELT) is available via this link: https://nav.gov.hu/penzmosas

The following information must be given on the TTNYELT form:

• makes the declaration as a public authority or service provider,

• which data provider (customer) is the subject of the indication,

• which Beneficial Owner is affected by the indication, and

which owner's data is affected by a significant discrepancy.

Organisations in the Beneficial Owner Declaration are rated by the authority on a scale of 10, the TT index.

If someone reports a discrepancy, it means minus points for that organisation. A discrepancy mark from an authority, a supervisory institution, a court, a prosecutors' office reduces the TT-index by 2 points, a discrepancy mark from a service provider reduces the TT-index by 1 point

If the TT data index:

• falls below 8 points (i.e. 7 or 6), then the TT data of the data provider are reported as uncertain,

• falls below a score of 6 (5-1), the data provider is rated as unreliable.

Monitoring the TT index will also be important for service providers. The NAV will make available on its website the names, abbreviated names and, if available, the tax numbers of those data providers who

• have Beneficial Owner data rated as "Uncertain" for a period exceeding 180 days, and

• in a separate database, those whose TT rating has been rated 'Unreliable'.

For customers with Beneficial Owner data that are rated as unreliable, the service provider must take customer due diligence measures corresponding to a high risk level, or the service provider must refuse to execute a transaction with a value of more than 4 500 000 HUF for a customer rated as unreliable.