Corruption in Hungary presents a significant risk to business, particularly in the tax administration and public procurement sectors, which suffer from high levels of corruption. Petty corruption is not widespread, but companies report that unofficial payments are sometimes necessary to resolve certain administrative tasks. Public procurement is vulnerable to irregularities at the local level because of strong informal relations between businesses and political actors. Hungary’s Criminal Code forbids bribery in the public and private sectors, along with most other forms of corruption offenses contained in international anti-corruption conventions. Enforcement of the anti-corruption framework is lacking. Criminal sanctions can be imposed on companies for acts of corruption committed by third parties working on their behalf, as well as if the individual carrying out the act is not prosecuted or convicted. There is no distinction between bribes and facilitation payments, and gifts and hospitality may be considered illegal depending on the intent and benefit obtained.
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November 2020, published on Risk & Compliance Portal