Hungary's Supervisory Authority for Regulated Activities (SZTFH) has published a new decree tightening anti-money laundering (AML) obligations for land-based casinos, card rooms, betting and online casino operators. The changes take effect on 20 August.
Under the revised rules, operators must broaden their internal risk assessments. These must consider the size and structure of the business, as well as the nature of the games and products offered, including game mechanics, odds, payout ratios and the extent to which players can influence outcomes.
Operators will also have to examine customer transaction patterns and strengthen their KYC procedures. Customer profiles must take into account factors including politically exposed person (PEP) status and country-of-origin risk.
The rules introduce a formal definition of "country of origin" for AML purposes. This covers a player's nationality and residence, as well as links to high-risk third countries and other relevant connections identified through risk-based screening.
Players who use at least HUF 4m ($12,800) in cash or virtual currency in a single transaction will be classified as high risk. The same applies where deposits into a player balance exceed an internally defined threshold over a rolling 365-day period. Operators can also set lower thresholds based on their own risk assessments.
Once a player is classified as high-risk, operators must carry out enhanced due diligence, including checks on the customer, the source of funds, and the purpose of the transaction. In some cases, operators may request documents confirming the origin of the customer's assets.
The rules also expand the triggers for enhanced monitoring. Players who ask an operator to make payments to a third party three or more times within a year, as well as those already classified as high-risk, will be subject to increased scrutiny.
Where a customer's declared source of funds does not match their transaction activity, or the operator's checks contradict the customer's declaration, documentary evidence of the source of funds will be required.
In May, Hungary’s new Government signaled changes for the country’s gambling sector
