Hungary's Allegations of Money Laundering Linked to Oschadbank

On March 5, 2023, Hungarian authorities seized two armored vehicles belonging to Ukraine's state-owned Oschadbank, which were transporting approximately $40 million, €35 million, and nine kilograms of gold from Austria to Ukraine. The Hungarian National Tax and Customs Administration (NAV) has since claimed that this convoy was involved in a money laundering operation, alleging that the vehicles carried freshly printed euros and dollars that had never entered circulation. Hungarian government spokesperson Zoltan Kovacs announced on April 8 that new evidence, including video footage, supports these claims.

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Kovacs stated that the investigation revealed connections to multiple banks, including Oschadbank, as well as institutions based in Poland and Gibraltar. The purported evidence includes a video allegedly showing a former Ukrainian intelligence major general falsifying documents in a gas station restroom while discussing corruption-related payments with associates. Kovacs emphasized that all investigative actions were conducted legally and requested international cooperation in the ongoing investigation.

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In response, Oschadbank has vehemently denied the allegations, asserting that the evidence presented by Hungary is fabricated. The bank claims that the video was manipulated, with Hungarian subtitles adding the phrase "corruption money," which does not exist in the original audio. Oschadbank maintains that the cash transfer was lawful, conducted under an international agreement with Raiffeisen Bank International, and that the funds were part of a standard cash transport operation.

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Oschadbank has also criticized the seizure of its employees' personal property and the continued detention of the armored vehicles, stating that it will pursue legal action to recover its assets. The bank has engaged an international auditing firm to verify compliance with currency transport procedures.

Detention of cash-in-transit guards in Hungary: Oschadbank claims falsification of video evidence

The situation has escalated tensions between Ukraine and Hungary, with Ukraine's Ministry of Foreign Affairs advising its citizens to avoid travel to Hungary due to concerns over arbitrary actions by local authorities. The ministry characterized the seizure as state banditry and a gross violation of rights, particularly following the reported abduction of seven Ukrainian nationals during the incident.

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As Hungary approaches its parliamentary elections on April 12, Prime Minister Viktor Orban has increasingly used Ukraine as a political tool, raising concerns about potential Russian interference in the elections to bolster his position.

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There are discrepancies regarding the nature of the seized funds and the legality of the actions taken by Hungarian authorities. While Hungary claims the funds are linked to money laundering, Oschadbank insists that the transfer was legitimate and compliant with international regulations. Furthermore, the exact origin and purpose of the funds remain unclear, complicating the narrative surrounding the incident.

Detention of cash-in-transit guards in Hungary: Oschadbank claims falsification of video evidence

• “requested international cooperation and rejected accusations of illegal actions, emphasizing that all investigative actions were documented and carried out in accordance with the law.” — Zoltan Kovacs, Hungarian Government Spokesperson

Hungary claims "new evidence" in the case of Ukrainian cash collectors

• “Oschadbank officially declares that the published video was falsified.” — Oschadbank Official Statement

Detention of cash-in-transit guards in Hungary: Oschadbank claims falsification of video evidence

This ongoing dispute highlights the complexities of international finance, law enforcement, and diplomatic relations, particularly in the context of regional tensions and political maneuvering.

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