Thursday, 18 June 2026
The Hungarian Parliament has introduced a legislative proposal aimed at strengthening transparency, combating corruption, and improving access to European Union funding. The bill, submitted on 9 June, proposes extensive changes across asset declarations, public procurement, anti-money laundering regulations, and the governance of public-interest foundations.
If approved, most provisions would take effect three days after promulgation, while selected measures would enter into force after 61 days.
A key element of the proposal is the overhaul of Hungary’s asset declaration system. The new framework would expand mandatory filing requirements to include a broader group of public officials, including senior political figures and board members of public-interest foundations. Declarations would be submitted electronically through an authenticated digital platform and made publicly accessible online.
The legislation also introduces more detailed reporting requirements covering a wider range of assets and liabilities, including declarations from household members. Former officials’ asset declarations would remain accessible for three years instead of one, while a new criminal offence related to non-compliance with declaration obligations could carry prison sentences of up to two years in cases involving concealment.
The proposal would significantly strengthen the powers of the Integrity Authority, positioning it at the centre of Hungary’s anti-corruption framework. The authority would be empowered to conduct asset declaration investigations, perform regular integrity reviews, access a wide range of confidential information for investigative purposes, impose administrative fines, and initiate proceedings related to public procurement disputes.
Another major provision concerns public-interest asset management foundations. Under the proposed rules, these foundations would be dissolved and their assets returned to the Hungarian state. The value of the assets expected to revert to state ownership has been estimated at approximately HUF 3 trillion.
Foundations not linked to higher education would be required to cease operations by the end of August 2026, while higher education-related foundations would have until August 2027. During the transition period, founder rights would revert to the government, and foundation board members would become subject to term limits, competitive appointment procedures, and oversight by the State Audit Office.
The legislation also introduces new measures affecting public procurement, including potential sanctions for bidders, while broadening transparency obligations for entities receiving or managing public funds. State-owned companies, public-interest foundations, and research institutions would be required to publish data regularly in a machine-readable format through the Central Information Public Data Registry, with records retained for at least ten years.
In addition, the proposal contains extensive amendments to anti-money laundering legislation. These include a broader definition of beneficial ownership, particularly affecting closed-end investment funds, enhanced due diligence requirements, and expanded access to beneficial ownership registers for authorised third parties.
The proposed reforms represent one of the most comprehensive governance and transparency packages introduced in Hungary in recent years and are widely viewed as part of the country’s efforts to address European Union concerns regarding corruption, public spending oversight, and the rule of law.
Source: CMS
