Information on declaration proceedings and rules on combating and preventing money laundering of the Government Office of the Capital City Budapest 

By section 4 (1) of the Act no. CLXIV of 2005 on commerce (Act on Commerce) “…trading activities for the supply of jewellery and other adornments of the like made of precious metal may be performed by declaration to the authority for trade and commerce.” The Governmental Decree no. 365/2016. (XI. 29.) appoint the Precious Metal Authority of the Government Office of the Capital City Budapest (referred as: Authority) as generally competent administrative authority for precious metal activities.

Section 6 of the Government Decree no. 187/2011. (IX. 14.) on the examination, authentication and the certification of the precious metal content prescribes that economic activity aiming at producing, repairing and selling by auction goods of precious metals may be carried out only with declaration to the precious metal examining and authenticating body issued under the rules of the decree no. 35/2011. (IX. 14.) NGM (the Ministry of National Economy)

The declaration should be submitted by filling out the official form developed by the Authority and by enclosing following documents:

• 1) Justification that the leader(s) of the commercial company is exempt from public debts. Proving the exemption from public debts may be possible in two ways:

• a) by declaration of the applicant, if the company is registered in the database of companies with no public debts by the Hungarian National Tax and Customs Administration (NAV) and the authority ascertains that the company has indeed no public debts;  

• b) certificate issued by the National Tax and Customs Administration that the company is free from public debts.

• 2) Official certificate from the Hungarian Office for Administrative and Electronic Public Services that the leader(s) of the company is (are) not stand(s) under prohibition of the precious metal trading activity.

The Authority permit to apply not confusable responsibly marks to the precious metal goods:

• 1) for the manufacturers if the goods are made in Hungary;

• 2) for the distributors for commercial individuals or companies, because in the territory of Hungary only such precious metal articles subject to hallmarking are eligible for release in trade or forced sale which are provided with name mark and hallmark issued upon authorization of Government Decree 187/2011. (IX. 14.)

Important for persons carrying out commercial activities:

• 1) The Act no. CXXXVI. of 2007 on the prevention of money laundering and financing terrorism foresees that individuals or companies carrying out commercial activities related to precious metals are obliged to develop internal rules on the prevention of money laundering and submit it for approval in one original example to the Authority within 90 days following the commencement of such commercial activities (one original example, 3000 HUF fee pay).

• 2) In order to carry out commercial activities the necessary professional qualification are required, which are set out by the decree no. 21/2010. (V. 14.) NFGM. such professional skills might be subject to on-site control therefore the certificates proving the existence of such professional skills should be kept in the store.  

Address: Bláthy Ottó street 3-5., H-1089 Budapest, Hungary

Website: www.mkeh.gov.hu

E-mail: nnyevo--.at.--bfkh.gov.hu

Phone: +36-1- 210-2771; +36-1-323-0621

Office hours:

Monday-Thursday: 8 am-12 and 1 pm-3 pm

Friday: 8 am-12