Opinion of the European Central Bank of 8 May 2009 on alignments of the Magyar Nemzeti Bank’s legal framework to new administrative rules (CON/2009/44)
Date: 2009-05-08
Institutions: European Central Bank
Subjects: Hungary, administrative procedure, administrative sanction, central bank, competence of the institution, national law

EN 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 8 May 2009 

on alignments of the Magyar Nemzeti Bank’s legal framework to new administrative rules 

(CON/2009/44) 

Introduction and legal basis 

On 22 April 2009 the European Central Bank (ECB) received a request from the Hungarian Ministry of 
Finance for an opinion on a draft law1 (hereinafter the ‘draft law’) amending Law LVIII of 2001 on the 
Magyar Nemzeti Bank2 (hereinafter the ‘Law on the MNB’). 

The  ECB’s  competence  to  deliver  an  opinion  is  based  on  Article  105(4)  of  the  Treaty  establishing  the 

European Community and the third indent of Article 2(1) of Council Decision 98/415/EC of 29 June 1998 

on  the  consultation  of  the  European  Central  Bank  by  national  authorities  regarding  draft  legislative 
provisions3,  as  the  draft  law  relates  to  the  Magyar  Nemzeti  Bank  (MNB).  In  accordance  with  the  first 

sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council 

has adopted this opinion. 

1. 

Purpose of the draft law 

On 15 December 2008 the Hungarian Parliament accepted certain amendments to the Law on the general 
rules for administrative proceedings and services4 (‘Law on administrative proceedings’) with a view to 

making administrative proceedings smoother, faster and more efficient. Since the Law on administrative 

proceedings is a general code, the relevant legal acts need to be amended and harmonised with the new 

rules under the draft law. Concerning the Law on the MNB the draft law aims to: 

(a) 

align the MNB’s legal framework with the Law on administrative proceedings,  

(b) 

create uniform rules for the MNB’s administrative proceedings, 

(c) 

establish the MNB’s right to impose sanctions,  

(d) 

authorise the MNB’s Governor to establish the fees payable for the MNB’s proceedings. 

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2  
3 
4  

Draft law T/9354 on the amendment of several acts in connection with the entry into force of Law CXI of 2009 amending 
Law  CXL  of  2004  on  the  general  rules  for  administrative  proceedings  and  services  and  with  the  transposition  of  
Directive 2006/123/EC of the European Parliament and of the Council of 12 December 2006 on services in the internal 
market, OJ L 376, 27.12.2006, p. 36. 
Magyar Közlöny 2001. VII. 5. 
OJ L 189, 3.7.1998, p. 42. 
Magyar Közlöny 2004. XII. 28. 

 
 
 
 
 
                                                      
2. 

General observations 

The  ECB  has  no  objections  to  the  Law  on  administrative  proceedings  in  the  matters  and  subject  to  the 

particular  rules  specified  in  the  Law  on  the  MNB,  provided  it  does  not  jeopardise  the  MNB’s 

independence.  The  ECB  understands  that  the  draft  law  does  not  affect  the  MNB’s  ability  to  adopt 

monetary policy decisions and that the obligation of professional secrecy under Article 38.1 of the Statute 

of the European System of Central Banks and of the European Central Bank is fully respected.  

3. 

Specific observations 

Sanctions of the MNB 

3.1   According to the proposed Article 29/C and 29/D to be added to the Law on the MNB, the MNB 

may  take  the  measures  prescribed  in  the  Law  on  administrative  proceedings  and  impose  fines 

(hereinafter referred to collectively as ‘sanctions’) for any infringement of the legislation listed in 

the  proposed  new  Article  29(1)  or  of  the  MNB’s  administrative  decisions  by  any  inspected 

organisations  or  persons  on  behalf  of  such  organisations.  The  ECB  understands  that  the  new 

sanctioning  powers  apply  in  the  following  areas:  payment  and  settlement  systems,  including 

securities  settlement  systems;  cash  processing;  statistical  compliance  under  the  central  bank 

information system; compliance with minimum reserve requirements; prevention of counterfeiting 

of  legal  tender  and  of  money  laundering.  The  ECB  welcomes  the  fact  that  once  the  draft  law  is 

enacted  the  MNB  will  be  authorised  to  impose  sanctions  directly.  The  ECB  also  notes  that  any 

widening  of  the  MNB’s  powers  has  to  be  supported  by  providing  it  with  sufficient  human  and 

financial  resources,  both  in  terms  of  quantity  and  quality,  to  carry  out  its  new  tasks  without 

affecting its capacity to carry out its tasks related with the European System of Central Banks. 

Fee regime 

3.2   According  to  the  proposed  subparagraph  i)  to  be  inserted  into  Article  60(1)  of  the  Law  on  the 

MNB, the Governor will be authorised - in contrast to under the general rules - to regulate alone in 

a decree the amount of the administrative service fee charged for any MNB proceedings requested 

(with  certain  exceptions)  and  the  rules  relating  to  the  payment  of  such  fees.  The  ECB  welcomes 

this new power. 

Miscellaneous 

3.3   The ECB understands that the remaining rules of the draft law amending other various legal acts do 

not affect the MNB’s independence. 

2 

 
 
This opinion will be published on the ECB’s website.  

Done at Frankfurt am Main, 8 May 2009. 

[signed] 

The President of the ECB 

Jean-Claude TRICHET 

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