Authorisation of cash processing operations
The cash processing operations defined in Subparagraph c) of Paragraph (2) of Article 3 of Act CCXXXVII of 2013 on Credit Institutions and Financial Enterprises (hereinafter: ‘CIFE’) as activities auxiliary to financial services may be carried out as a business in possession of the authorisation of the Magyar Nemzeti Bank. The liability for exercising the right of withdrawal of such authorisations also lies with the Magyar Nemzeti Bank.
The Central Bank regularly inspects the professional activity of organisations with authorisation for cash processing, the continuous existence of conditions that existed when the authorisation was granted, the quality of cash paid to it etc.
Statutory provisions relating to carrying out cash processing operations and the conditions for authorisation:
- Article 76(3), Article 78 of the CIFE;
- Article 65 of Act LIII of 2017 on the Prevention and Combating of Money Laundering and Terrorist Financing (Pmt.);
- Article 3 (4) of Act LII of 2017 on the implementation of financial and property restrictive measures (Kit.) ordered by the European Union and the UN Security Council
- Decree 21/2017. (VIII.3.) of the Ministry for National Economy on the particulars of internal regulations to be prepared under Pmt. and Kit.
- Executive decree 536/2013 (XII.30.) on the regulation of conditions for the provision of certain auxiliary financial services
- Decree No. 19/2019. (V. 13.) of the Governor of the MNB on the processing and distribution of banknotes and on technical tasks relating to the protection of banknotes against counterfeiting (hereinafter: Banknote Decree)
- Decree No. 20/2019. (V. 13.) of the Governor of the MNB on the processing and distribution of coins and on technical tasks relating to the protection of coins against counterfeiting (hereinafter: Coin Decree)
The procedure of authorisation, amendment and withdrawal of authorisation
Acting in an official capacity, the MNB authorises cash processing operations, amends and withdraws the authorisation.
The Financial Stability Board decides on the provision, modification or withdrawal of activity licence, and Directorate Cash Logistics of the MNB acts in such proceedings. The administrative deadline is three months. Proceedings for the licensing of cash processing activities are subject to service fee defined in MNB Decree No 14/2015. (V. 13.) on the administrative service fee for certain licensing and registration proceedings in the framework of the supervision of the financial intermediary system by the Magyar Nemzeti Bank and proceedings carried out in respect of fiduciary companies.
The MNB launches the public proceeding – with the exception of the authorisation withdrawal procedure initiated by it ex officio – on the basis of the applicant’s application submitted in writing.
Clients may submit an application to the MNB in writing, via electronic means in accordance with Eüsztv., on a standard form provided by the MNB for this purpose through the MNB’s information system ensuring electronic administration (ERA).
The documents listed in the Executive decree 536/2013. (XII.30.) have to be attached to the application.
In the course of the authorisation procedure the MNB checks the documents and the information available to ascertain that issuing the authorisation does not conflict with the relevant provisions of law, and examines whether the conditions for performing the activity exist. The MNB may check the conditions at the applicant’s site as well.
For further information in connection with cash processing operations, please, contact:
- For technical questions regarding machines, tools and materials that can be used in cash processing: Péter Klein, phone: +36 1 421 3378;email@example.com
- For questions regarding security rules: Péter Répási, phone: +36 20 452 3760, firstname.lastname@example.org and Ábel László Ballagó, phone: +36 20 256 9347, email@example.com
- For issues regarding the authorisation procedure: Judit Ferincz, phone: +36 1 421 3386 ; firstname.lastname@example.org Zita Véber, phone: +36 1 421 3316; Dr Anikó Jagusztin-Török, phone: +36 1 421 3318; email@example.com
- For questions regarding the regulation on the prevention and combating of money laundering and terrorist financing
Dr Zoltán Toronyi, phone: +3614899312, firstname.lastname@example.org