Hungarian Authorities Seize $300 Million in Central Bank Money Laundering Probe
Major Money Laundering Investigation Involving Hungarian Central Bank Foundations
By Krisztina Than
Seizure of Funds and Securities
BUDAPEST, May 29 (Reuters) - Hungarian prosecutors and police seized some 92 billion forints' ($300 million) worth of funds and securities in a money laundering probe of foundations set up by the central bank years ago, prosecutors said on Friday.
Central Bank Cooperation and Background
The National Bank of Hungary was cooperating with prosecutors, and had provided documents for the case which dates back to before its current governor took office, the prosecutors told a news briefing.
The NBH declined to comment on Friday but referred to previous statements in which it said it was cooperating with authorities and had filed a report with police.
Origins of the Investigation
Since early 2025 prosecutors and police have been investigating the Pallas Athene Domus Meriti Foundation, set up by the NBH under its previous management, after a State Audit Office report raised concerns about investments made by the foundation and its asset management firm.
Political Response and Oversight
Prime Minister Peter Magyar, who ousted Viktor Orban in an election last month, has said the central bank's past operations must be investigated and his ruling party is setting up a parliamentary committee for this purpose.
Details of the Foundations and Asset Management
Scale of Managed Assets
PADME's asset management firm managed nearly 500 billion forints of assets, of which 407 billion came from public funds, according to the State Audit Office.
Audit Findings and Suspected Offenses
"The investments were made ... through an essentially opaque corporate and investment structure of companies and private equity funds," the audit office said in its March 2025 report, adding its audit "established the suspicion of several criminal offences and filed a complaint with the prosecutor's office."
Central Bank's Statement on Foundation Independence
Gyorgy Matolcsy, who was central bank governor from 2013 until March 2025, said in a press statement on April 22, 2026 that the bank had no legal mandate to interfere with the operation of its foundations and investments, as the foundations "were acting independently".
Scope and Progress of the Investigation
Searches and Seizures
Prosecutors told the briefing on Friday that together with police they had searched the premises of 17 legal entities over the previous two days and had seized huge volumes of documents and data as part of the investigation into "mismanagement of funds causing a particularly significant loss."
They did not name the companies or individuals. No charges have been filed in the case yet.
Individuals and Entities Involved
The investigation affects 97 individuals, 36 businesses and 11 private equity funds so far, they said.
Details of the Seized Money
"Money was first seized on April 23 last year... by now a total of almost 92 billion forints worth of money on banking accounts and securities have been seized," Zoltan Istvan Kiss, a senior police official, said.
He said the money laundering probe was into transactions linked directly or indirectly to the PADME and Neumann foundations of the central bank.
Additional Criminal Complaints
Last year the State Audit Office also filed a criminal complaint for suspected mismanagement of public assets at the Neumann university foundation set up by the NBH.
($1 = 304.6400 forints)
(Reporting by Krisztina Than; Editing by Susan Fenton)
