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 (NDIF).
The deposit insurance provided by the NDIF 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 NDIF is entitled to pay compensation, the upper limit of payment is defined by law to be EUR 100,000 currently, calculated into Hungarian forints. If the conditions defined by law are met, and the deposit has been placed in a separate account, the upper limit of the compansation may be increased by an additional amount of up to the equivalent of EUR 50,000 in Hungarian forint. 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, NDIF’s 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).
We kindly ask that if any of the data listed above has changed since your last visit to the bank, please visit our branch as soon as possible so that we can update your identification data accordingly.
Please also note that if the AML Act will require further customer due diligence in the future, then you will have to visit again our branch 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.
Following the initiation of the compensation procedure, the NDIF shall make the compensation amount available to eligible clients within 7 working days. The payment deadline may be longer if, for example, the depositor’s eligibility is uncertain or the deposit is subject to a legal dispute. Clients entitled to compensation may claim it from the NDIF within 5 years from the day following the expiry of the compensation deadline; after this forfeiture period, compensation can no longer be paid.
The NDIF free mobile application is a fast and easy-to-use tool via smartphone to check your saving weather it is protected or not. The application show the limits of your protection, the list of the institutions are protected by the NDIF and also a process map what happens if a bank fails. This application contains the most important issues related to deposit insurance, you can also access the OBA website, contact the NDIF staff.
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).
