On the basis of information gathered during the supervisory investigation of Buda-Cash indicating serious abuses in the institution’s operations, the Financial Stability Council of the Magyar Nemzeti Bank (MNB) suspended the institution’s operating license with immediate effect as a temporary measure and appointed oversight commissioners as of today.

The temporary measure stipulated in the MNB’s order in connection with the institution’s operations was required by the urgent need to protect stakeholders, primarily investors.

The oversight commissioners took over control of the institution from management today and will provide for the adequate operation thereof.

Simultaneously, the central bank ordered the suspension of the right of disposal over customers’ securities and funds during the effective period of the measures, in order to ensure full establishment of the facts and violations. The measures will remain in effect until withdrawn, but at the latest until the central bank's investigation is closed.

Since criminal offence is also suspected in connection with the case, the MNB yesterday filed a criminal complaint with the competent general police headquarters.

The central bank will keep the public updated on the results of its supervisory investigation and any further measures it may take.

Magyar Nemzeti Bank