Kenneth Rijock

Kenneth Rijock

Tuesday, February 23, 2016

DID YOUR HUNGARIAN BANK CLIENT BUY HIS CITIZENSHIP ?


It is getting difficult to keep up with all the jurisdictions offering an economic passport, or citizenship through investment, but you do need to be current. Please note that Hungary also offers such a program, known officially as the Hungarian Immigration Investment Program.

Interested Asian & African investors are required to deposit  €300m, which will be returned after 5 years, without any interest accrued. While most compliance officers regard Hungary as low risk for both money laundering, as well as terrorist financing, I note that the Government of Hungary appears to be targeting wealthy Chinese nationals, so we must assume that there will be corruption issues. Please conduct your compliance accordingly.

Word to the wise: check the place of birth on the passports of ANY new bank client, at account opening. Was he or she actually born in their country of nationality ? If not, why not ? You may have stumbled upon someone who bought their passport. needless to say, that means enhanced due diligence is in order, if you are operating a risk-based compliance program.

1 comment:

  1. Hungary grants only Permanent Residency and no citizenship through this program!

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