On 17 October 2024, the Hungarian government issued resolution No. 1306/2024, which defines an action plan to assess and enhance the effectiveness of criminal law measures targeting legal entities. Through the resolution, the government has acknowledged that to ensure sanctions against legal persons are effective, proportionate and serve as a deterrent, a thorough review of the existing legal framework is necessary to identify areas for improvement.
Along these lines, the government issued the following instructions:
- The Minister of Justice – along with the Minister of the Interior, Minister of Finance, Minister responsible for EU Affairs, Prosecutor General, President of the National Office for the Judiciary, National Council of Justice and President of the Hungarian Bar Association – should examine the functions and effectiveness of the Hungarian corporate criminal regime and review the relevant legislation of other EU member states, with regard to the good practices prevailing in this landscape;
- Based on what was learned from this examination, the Minister of Justice should – in consultation with the Minister of the Interior and the Minister of Finance – draw up draft legislation on criminal measures against legal persons and submit it to the Hungarian parliament;
- The Attorney General, the President of the National Office for the Judiciary, the National Council of Justice and the President of the Hungarian Bar Association should cooperate in the foregoing examination.
The deadline for the Minister of Justice to submit the draft legislation to parliament is 30 October 2026.
In view of these initiatives, it is anticipated that the forthcoming legislation will try to impose even more stringent monetary sanctions against corporations accused of being involved in criminal activities. The proposed legislation is expected to provide criminal authorities with broader legal and practical instruments to strengthen the enforcement powers of the Hungarian state.
Considering the government’s objectives, it is also expected that the new legislation will significantly increase the number of criminal inquiries into suspected tax fraud, particularly in cases involving capital-intensive corporations.
For more information on this draft legislation, contact our CMS client partner or these CMS experts.
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