Hungarian Prosecutors Seize $300 Million in Central Bank Probe

Hungarian authorities have seized 92 billion forints, roughly $300 million, in an expanding money laundering investigation targeting foundations established by the National Bank of Hungary. The move follows a State Audit Office report that flagged opaque investment structures and the potential mismanagement of hundreds of billions in public assets.

Police and prosecutors conducted raids across 17 legal entities over the past two days, securing massive volumes of data and documents. While no formal charges have been filed, the investigation currently involves 97 individuals, 36 businesses, and 11 private equity funds. The inquiry focuses on transactions linked to the Pallas Athene Domus Meriti (PADME) and Neumann foundations, both of which were created under the central bank’s previous management.

State auditors previously alleged that PADME’s asset management firm mishandled 407 billion forints of public funds through complex, opaque corporate networks. Former governor Gyorgy Matolcsy, who led the bank until March 2025, has maintained that the bank held no legal mandate to oversee the foundations, claiming they operated independently. Prime Minister Peter Magyar’s administration has pledged a full parliamentary review of the bank’s past operations, intensifying the scrutiny on the institution's historical financial activities.