Deposit insurance - National Deposit Insurance Fund
Dear Customer!
Credit institutions with headquarter in Hungary, are bound to join the deposit insurance system (OBA/NDIF), consequently the deposits (sight and fix) deposited in any Hungarian credit institution are under OBA protection - not including the deposits, which are excluded from the insurance legislation. KDB Bank Europe (hereinafter: Bank) is a member of the National Deposit Insurance Fund.
The deposit insurance provided by the OBA applies to registered deposits only.
If a credit institution becomes insolvent, i.e. is unable to pay the depositor's savings (deposits become unavailable), the OBA (NDIF) is entitled to pay compensation: first time the capital, then the interest amount, the upper limit of payment is defined by law to be EUR 100,000 currently, calculated into Hungarian forints. The NDIF insurance is valid for each credit institution respectively. What it means is that if a depositor deposits money in multiple banks, they are insured in each bank up to the limit defined in law.
Pursuant to the Act CCXXXVII of 2013 on Credit Institutions and Financial Enterprises (hereinafter: Banking Act), from 1 January 2021 in case of registered deposit, National Deposit Insurance Fund’s (NDIF) statutory insurance covers only deposits of depositors all of the identification data of whom have been recorded by the Bank by the identification performed on the basis of Act LIII of 2017 on the Prevention and Combating of Money Laundering and Terrorist Financing (hereinafter: AML Act).
In the case of a natural person, according to the current AML Act, for the identification the following particulars are required to be recorded in the Bank’s system:
- surname and forename,
- surname and forename by birth,
- nationality,
- date and place of birth,
- mother’s birth name,
- home address, or habitual residence in the absence thereof,
- number and type of identification document.
In the case of beneficial owner, the following particulars are required to be recorded in the Bank’s system:
- surname and forename,
- surname and forename by birth,
- nationality,
- date and place of birth,
- home address, or habitual residence in the absence thereof,
- statement declaring whether the beneficial owner is a politically exposed person.
In the case of a legal person or an unincorporated organization, according to the current AML Act, for the identification the following particulars are required to be recorded in the Bank’s system:
- name, abbreviated name,
- registered office, or the address of the Hungarian branch of foreign companies, if applicable,
- main activities,
- name and position of authorized representatives,
- surname and forename, and home address, or habitual residence in the absence thereof of the delivery agent, if applicable,
- the registered number of legal persons listed in the companies register, or the number of the resolution adopted on the foundation (registration, admission into the register) of other legal persons, or their register number,
- tax number.
In the case of beneficial owner, the following particulars are required to be recorded in the Bank’s system:
- surname and forename,
- surname and forename by birth,
- nationality,
- date and place of birth,
- home address, or habitual residence in the absence thereof,
- the nature and extent of ownership interest,
- statement declaring whether the beneficial owner is a politically exposed person (if relevant).
In view of the above, if in your case
- the Bank has performed your identification under the AML Act before June 26, 2017, and since then you did not visit any of our branches for data reconciliation, or
- there has been a change in any of the particular data listed above since your last branch visit,
then please visit one of our branches as soon as possible in order to record the appropriate identification data.
In case you opened your bank account after June 26, 2017 and there has been no change in any of the data listed above compared to the data recorded by the Bank, then you do not have anything to do.
Please also note that if the AML Act will require further customer due diligence in the future, then you will have to visit again one of our branches to record the appropriate identification data.
Please note that if the identification of the depositor along current AML Act is missing, then in case of a possible compensation event, there is no possibility for identification along AML Act, and therefore the deposit is not covered by deposit insurance. As a depositor it is your interest and obligation to report any change in your data, especially a change in your residential address, to the Bank! If you fail to report changes, you still remain entitled to compensation; however, you may receive your money later due to more difficult data processing and verification.
For further information, please refer to "Compass to deposit insurance" in the prospectus, which is available on our Bank’s website (https://www.kdbbank.eu/deposit-insurance-national-deposit-insurance-fund) or contact OBA website (www.oba.hu).
