Money laundering is when someone tries to hide where money or assets really came from — usually to make illegally earned money look legitimate. This can involve moving, changing, or disguising assets so their criminal origin is no longer obvious. In simple terms, it’s making “dirty” money appear “clean.”

The law in Hungary takes a broad view of what counts as money laundering. Since January 1, 2021, the rules have expanded to cover more situations — even the person who committed the original crime can be charged with laundering the proceeds. With today’s online tools, it’s easy to set up companies or bank accounts anywhere in the world, and criminals often handle the laundering themselves to save money and reduce the risk of getting caught. Cryptocurrency and other new asset types are also covered, and in the most serious cases (especially if organized crime is involved), sentences can reach up to 20 years in prison.

In practice, money laundering can take many forms, such as:

• Hiding the source of money or assets so they look legal.
• Moving or converting assets to make them harder to trace (for example, selling stolen goods or changing their form).
• Blocking asset recovery, such as helping someone keep property that should be seized.
• Receiving assets from someone else’s crime, knowing where they came from.

Even everyday transactions — like using criminal funds to start a company or pay salaries — can qualify. The key factor is whether the money or assets come from a crime, and whether actions are taken to disguise or protect them.