Primary anti-bribery legislation and enforcement agencies
Anti-bribery legislation:
Act C of 2012 on the Criminal Code (Hungarian Criminal Code)
Prohibits bribery of domestic and foreign public officials
Act CIV of 2001 on Measures Applicable to Legal Entities under Criminal Law (Corporate Criminal Measures Act)
Extends criminal enforcement for corrupt practices to companies
Investigating agencies:
Police (in commercial bribery and less serious public bribery cases)
Public prosecutor (in more serious public bribery cases)
Offences
Public bribery:
An individual is guilty of public bribery if:
- he or she attempts to influence a public official
- in connection with his or her actions in an official capacity
- by giving or promising an (unlawful) advantage
- to a public official or to another person on account of such person.
A public official is guilty of public bribery if:
- he or she requests or accepts an (unlawful) advantage or a promise of such an advantage or agree with another person requesting or accepting the advantage
- for himself or herself or for a third party on his or her behest
- in connection with his or her actions in an official capacity.
A company executive is guilty of negligent public bribery if:
- he or she fails to exercise proper supervision
- and such failure results in public bribery.
Commercial bribery:
An individual is guilty of commercial bribery if:
- he or she attempts to influence a person working for or on behalf of an economic operator
- to induce him or her to breach his or her duties
- by giving or promising an (unlawful) advantage
- to the person working for or on behalf of an economic operator or to another person on account of such person.
A person working for or on behalf of an economic operator is guilty of commercial bribery if:
- he or she requests or accepts an (unlawful) advantage or a promise of such an advantage or agree with another person requesting or accepting the advantage
- for himself or herself or for a third party on his or her behest
- in connection with his or her activities performed for or on behalf of an economic operator.
Corporate liability:
Criminal measures may be applicable to companies in connection with corrupt acts that were aimed at or have resulted in the company gaining benefit or to which the company was used, if either of these conditions are met:
a) The corrupt act was committed in connection with the company’s operation by an executive officer, other authorized representatives, board members or anybody else acting on their behalf.
b) The corrupt act was committed in connection with the company’s operations by an employee or owner, and a proper management approach or supervision by the executive officers or board could have prevented the criminal act.
The same measures may also be applicable in connection with corrupt acts that have resulted in the company gaining benefit or to which the company was used if an executive officer, other authorized representatives or board members had knowledge of the corrupt act.
Extraterritorial application: Yes, practically when a corrupt act occurs:
- wholly or partly within Hungary;
- wholly outside Hungary at a time when the offender was a Hungarian citizen;
- wholly outside Hungary if the injured party is either a Hungarian citizen or an economic operator incorporated in Hungary.
Penalties – Criminal and/or civil liability
For an individual, imprisonment for up to eight years; for a public official, imprisonment for up to 10 years
In practice, the following criminal measures may apply to companies in connection with corrupt acts:
- A fine up to triple the financial gain acquired or intended to be acquired by the corrupt act
- Debarment from state/EU subsidies and public contracting, including the termination of ongoing publicly funded projects.