Commission Report 2002 (Hungary)

Subsections

• Progress since the last Regular Report
• Overall assessment
• Conclusion

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Chapter 24: co-operation in the field of justice and home affairs

Progress since the last Regular Report

Since the last Regular Report, considerable progress has been registered in Hungary in numerous fields such as visa policy, the Schengen Action Plan and the fight against fraud and corruption.

Following the entry into force on 16 November 2001 of the co-operation Agreement between Hungary and Europol, the Data Protection Supervisory Body of the International Law Enforcement co-operation Centre (NEBEK) was set up, with five staff. After several months of the post being vacant, the new Parliamentary Commissioner for Data protection was finally appointed in December 2001 for a period of six years.

As to visa policy, new visa obligations were introduced for nationals of Cuba, the Seychelles and the Republic of South Africa. The visa requirement has been abolished for the special administrative regions of Macao (December 2001) and Hong Kong (February 2002). The new Act on the Entry and Stay of Foreigners, which entered into force in January 2002, provided the legislative framework for the introduction of a new visa sticker with higher security standards. These started to be issued as of September 2002. An electronic Consular Information System supporting the issuing of visas (recording and storing the visa applications, printing the issued visa stickers) has become operational at the Office of Immigration and Naturalisation. All consular missions are now connected to the Consular Information System. The establishment of the register on visas and visa applications is in progress.

At external borders, the infrastructure has been further modernised and upgraded in line with the Schengen/EU requirements. Infrared surveillance equipment, fast patrol boats, patrol equipment and criminal investigation devices have been deployed. Document-reading devices were also installed in the course of 2001. In addition, some 26 vehicles, dubbed Schengen standard buses, have been equipped with document-checking technology. Each of the buses contains a full complement of all the instruments used at border crossings, such as passport checking computers, carbon monoxide meters, Geiger counters and drug identification equipment. A total of 4 000 kits for use by border control personnel, each containing drug identification equipment, a patrol bag, a portable metal detector and a megaphone, were also made available. Remarkable progress has been made concerning the use of information technology, and further steps were taken with a view to future connection to the VISION system and the development of SIRENE.

Three border crossing points (Záhony, Tompa and Gyula) along the future external borders of Hungary have started to operate according to Schengen/EU requirements as a pilot project. Further contact points at Hungary`s land borders with Austria, Slovakia and Slovenia are being established in order to facilitate border traffic and migration control. Over the last year some 87.5 million legal border crossings were registered including 30.7 million vehicles. 30 115 people were turned back for non-compliance with proper entry and travel residence conditions.

Also, the staff of the Border Guard was further increased and training in acquis-specific issues as well as in languages for the border guards continued. Training of 50 future liaison officers and 100 document experts qualifying for the Schengen list is underway.

In July 2002, Hungary submitted a revised Schengen Action Plan.

As far as migration is concerned, an amended Law on Entry and Stay of Foreigners entered into force in January 2002, which introduced the unified residence permit and simplified expulsion rules. Anyone wanting to stay longer than 90 days in the country can apply for a one-year extendible visa. Residence of unlimited duration will be granted after five years of stay in the country, instead of three as before, and people with at least eight years of immigrant status can apply for citizenship. This means that foreign nationals will be able to initiate naturalisation procedures 13 years after arriving in the country.

The new law also introduced stricter rules for taking action against those who ``promote'' illegal migration and illegal employment e.g. employers employing foreigners illegally.

On the administrative side, the Office of Immigration and Nationality (OIN) became the body responsible for migration matters, for which a central alien policing register was established in January 2002. Its new seven regional directorates (Budapest, Debrecen, Gyr, Miskolc, Pécs, Szeged and Székesfehérvár) and fourteen customer offices have to deal with some 100 000 requests a year nation-wide. In addition, some 20 000 pending cases were taken over from the police and public administration offices and procedures slowed down in the first months of 2002.

The newly amended law on asylum entered into force in January 2002. It is largely in line with the acquis and well implemented. During the reference period, the overall living conditions in the reception facilities for asylum seekers were further improved and now broadly correspond to European standards and practices. In June 2002, a new refugee integration centre was opened with a capacity of 300 persons.

Hungary continued to be a target country for asylum seekers and the number of applications for refugee status rose in 2001 by about 22.5% compared to 2000. The number of registered refugees reached 9 554 in 2001 (7 799 in 2000), the largest number since the early 90s. The number of asylum seekers actually granted official refugee status, however, remains at a low level. In 2001, only 174 applicants were granted official refugee status and 297 the status ``authorised to stay'' (a humanitarian residence permit).

The Office for Immigration and Nationality (OIN) - besides the above mentioned migration matters - is also in charge of asylum applications.. The Headquarters of the Office reviews appeals against their decisions. Against these decisions an appeal to the Budapest Municipal Court can be made and in the last instance to the Supreme Court..

As preparation for the introduction of the Automatic Fingerprint Identification System (AFIS), a central unit has been established at National Police Headquarters. Workstations are to be set up at the regional directorates of the Office for Immigration and Nationality. The system in development is to be compatible with EURODAC.

A working group, composed of various ministries, the Office for Immigration and Nationality, the UNHCR, NGOs and refugee representatives, is currently developing a strategy for the integration of refugees. In the meantime, measures for the integration of refugees are supervised by the Office for Immigration and Nationality.

Hungary has concluded new readmission agreements with the Benelux countries and initialled a new one with Estonia and Slovakia. The re-admission agreement with Albania entered into force in December 2001. The agreements already in force with Romania and Croatia have been amended in order to ensure alignment with the requirements of the acquis.

With regard to police co-operation and organised crime, the police co-operation agreement between Hungary and the European Police Office (Europol) entered into force in November 2001. In April 2002, the International Law Enforcement co-operation Centre became the single contact point for international co-operation for all Hungarian law enforcement agencies. Deployment of the liaison officers (one police and one customs officer) to Europol took place in April 2002. Following the entry into force in April 2002 of a new Witness Protection Law, a specific Unit (31 persons) has been established within the Police Operational Support Directorate.

Hungary continues to be primarily a country of transit and destination for trafficking in human beings. Trafficking is prohibited by law, and the respective sanctions have become stricter since April 2002 when the amendments to the Penal Code entered into force. Since the entry into force of the law on entry and stay of foreigners in January 2002, detected traffickers may be expelled from Hungary with immediate effect.

In February 2002, a substantial package of amendments to the Penal Code was adopted in order to align with the acquis and the UN Convention on Trans-national Organised Crime. These amendments came into force in April 2002. It covered the following main issues: introduction of the new concept of organised criminal group, the shift of the burden of proof in cases of forfeiture of assets, the criminalisation of obstruction of justice, of bribery and of participation in an organised criminal group, stricter provisions on trafficking in persons and the extension of criminal liability of foreign public officials for passive bribery.

A new agreement was concluded with FRY in November 2001 to improve the fight against cross-border crime.

Hungary signed the United Nations Convention for the Suppression of the Financing of terrorism in November 2001. Hungary is party to all other terrorism-related UN conventions. Hungary also joined the EU Common Positions on the fight against terrorism. In March 2002, new legal measures were taken to freeze financial assets of terrorist and terrorist organisations.

In order to ensure the effective implementation of the policy on counter-terrorism, a new unit has been established in the organised Crime Directorate of the National Police Headquarters. The Counter-Terrorist Subdivision is responsible for detecting and preventing terrorist related crimes and has a staff of 9. In order to develop the equipment used in the fight against terrorism, firearms and other equipment have been purchased.

In the context of the fight against fraud and corruption (see also section .1.1. - Democracy and the rule of law), in December 2001, a new law was adopted concerning the criminal liability of legal persons.. Under this law, penalties may be imposed upon a legal person in respect of crimes committed by a natural person for the benefit of a legal person. The law will come into force upon Hungary`s accession to the EU.

Within the amended Penal Code, which entered into force in April 2002, more severe punishments and sentences for bribery have been introduced. Also, the rules on the immunity of persons elected to public office as well as on the possible confiscation of property gained through contacts with organised crime have been made more stringent. Active bribers (those giving the bribe) may be exempted from punishment if they provide information to the authorities and help to identify the passive briber. The conformity of this latter element with the Convention for the Protection of the European Communities' Financial Interests remains to be assessed. Officials may now be punished if they fail to fulfil their obligation of reporting the case to the competent authorities.

An anti-fraud interministerial co-ordination Committee was created in November 2001, which is to contribute to the safeguarding of the financial interests of the Community. In addition, in 2002 an amendment to the penal code was adopted, which makes fraud against the financial interests of the Communities a criminal offence.

On the institutional side, the Ministry of the Interior and the Ministry of Justice have the overall responsibility for the implementation of the anti-corruption strategy. In addition, various bodies have been set up to make the fight against corruption more effective. Notably, in the police force, a special anti-corruption unit was established in February 2002 to investigate allegations of corruption against police officers. The Prosecutor General`s Investigation Office is in charge of files involving members of the Government, of Parliament, senior officials of the administration, or more generally, persons of public interest. (see also political criteria).

In the area of drugs, the implementation of the National Strategy to Combat Drugs and Drug Addiction continued. Progress was made in the areas of prevention, research, improved therapeutic capacities and the establishment of co-ordination Fora on Drug Affairs in the Ministry of Health. The legal status of these fora is, however, not clearly defined, and the level of resources as regards staff and budget is poor. The amendment to the Code on Criminal Procedure, defines the production, supply, distribution, engagement in the trafficking of, importing, exporting or transiting through the territory of Hungary chemical materials used for the production or manufacture of narcotic drugs as a crime. A National Contact Point for co-operation and Information Exchange was established.

In the context of the fight against money laundering (see also Chapter 4: Free movement of capital), a new law entered into force in January 2002. It contains provisions on the phasing out of anonymous saving deposit books, securities and the licensing of currency exchange. Only credit institutions and their agents are authorised by the Hungarian Financial Supervisory Authority to offer currency exchange services. The law also provides for the identification of the beneficial owners of bank accounts. In June 2002, the OECD Financial Action Task Force removed Hungary from its list of non-co-operative countries.

A Financial Intelligence Unit within the National Police Headquarters is responsible for analysing suspicious transactions (staff: 18). The number of suspicious transactions reported to the Financial Intelligence Unit has grown significantly over the last two years.

Hungary has promulgated agreements on customs co-operation with Argentina, the Federal Republic of Yugoslavia and Kyrgyzstan in 2001 and with Latvia in 2002.

With a view to Hungary`s participation in European networks and institutions (European Judicial Network, EUROJUST), the Ministry of Justice and the Prosecutor General have been designated as contact points.

In March 2002 Protocols 1 and 2 to the European Convention for the Prevention of Torture and Inhuman or Degrading Treatment of Punishment entered into force.

Overall assessment

As regards data protection, the provisions on the protection of personal data and disclosure of data of public interest will need to be fully aligned.

In the area of visa policy, legislation should be further aligned as regards EU visa obligations and EU visa-free travel.

The number of staff of the Aliens Policing Division of the Office for Immigration and Nationality has to be increased in order to ensure that visa applications are dealt with expeditiously.

As regards external borders, the law of January 2001 on the protection of the state border and the border guard aligned the Hungarian legislation to a large extent with the Schengen/EU acquis in this field. Hungary has made impressive progress in the implementation of the Schengen Action Plan and been very active in concluding bilateral agreements on border control, border surveillance and police co-operation. Hungary has not yet been able to conclude all necessary bilateral agreements.

Hungary is well advanced with up-grading border crossing points. The border guard is making good progress in recruiting more personnel and must maintain its efforts in line with its staffing strategy. Equipment is being improved in order to reach the necessary standard. Hungary must maintain its efforts on training the border guards. There is a need for a flexible training system, which will be able to implement ongoing training of personnel and respond to new training needs.

Regarding the development N.SIS and SIRENE, and preparations for the future connection to the VISION system, preparations should be continued.

Concerning migration, further re-admission agreements will have to be concluded (notably with Belarus, Pakistan, the Russian Federation, Peru), whilst some other agreements will have to be aligned (Ukraine, Slovakia, Slovenia).

All the provisions of the Law on Hungarians Living in Neighbouring Countries adopted in June 2001, including those concerning migration, will have to be applied in accordance with the acquis from the date of accession (see also Chapter 27: Common Foreign and Security Policy).

The new legislation on asylum is largely in line with the acquis and is, in general, well implemented. Officials dealing with asylum issues display a high level of professionalism. There is still a need to define better the criteria determining whether a person who has entered Hungary illegally should be kept in a reception centre or in a border guard detention centre. Care must be taken to ensure that persons who have entered Hungary illegally and been placed in border guard detention centres can obtain access to a lawyer and that applications by such persons for asylum are presented promptly to eligibility officers for consideration. The capacity of reception centres is generally adequate. Further training is necessary with regard to foreign languages, as well as in order to apply the criteria and mechanisms for determining the responsible member state (Dublin Convention), to implement EURODAC and to develop the integration capacity for refugees. Social integration measures should also be extended to persons granted ``authorised to stay'' status, who are currently excluded.

In the area of police co-operation and the fight against organised crime, the International Law Enforcement co-operation Centre is capable of ensuring international police co-operation and the implementation of the Europol agreement. Additional staff from the Prosecutor General`s office and the tax administration should be assigned. Statistical instruments for measuring crime rate should be improved, while new methods of technical crime investigation, including development of forensic investigation should be further developed.

Hungary still needs to ratify the 2000 UN Convention against transnational organised crime (Palermo Convention) and its Protocols (the Protocol on firearms remains to be signed), as well as the 1999 UN Convention for the Suppression of the Financing of Terrorism. It needs to sign and ratify the Second Additional Protocol to the European Convention on Mutual Legal Assistance in Criminal Matters of November 2001 and to accede to those Conventions in Principle 2 of the EU Strategy on Organised Crime, to which Hungary is not yet party. Furthermore, the introduction of a uniform digital communications network should be completed.

So far, Hungary has concluded some 28 bilateral international agreements on combating cross-border organised crime.

In the area of the fight against fraud and corruption, the legal framework is almost entirely in line with the acquis. In particular, the introduction of asset statements for public servants is a significant step forward in the fight against corruption. More manpower has to be devoted to the fight against corruption. While the establishment of special units to investigate corruption within the police force and within the Prosecutor General`s office are important step forwards, these would need more staff and training . In addition, co-operation between the various agencies should also be improved. Hungary should also pay more attention to the fact that prevention through transparency and accountability standards is as important as repressive tools.

Hungary has not yet signed the Council of Europe Civil Law Convention on corruption.

anti-money laundering laws are efficiently implemented. In particular, the Hungarian Financial Supervisory Authority is a competent body, possessing adequate powers and sufficient staff. Its working methods are in line with European standards. It ensures strict enforcement of the rules concerning identification of customers, of bank account owners and of the nature of banking operations. It is also overseeing the withdrawal of anonymous passbooks, which was decided in December 2001. However, the rules determining which financial institutions are to be selected for investigation remain unclear. The Financial Intelligence Unit needs to be further upgraded with regard to staff and information technology equipment. There is also room for improvement as regards the co-operation with the Hungarian Financial Supervisory Authority.

In the field of drugs, the full implementation of the National Strategy to combat Drugs should be ensured, in particular by putting more emphasis on supply reduction aspects; more financing is also necessary for prevention programmes. Hungary also still needs to ratify the 1995 Agreement on Illicit Traffic by Sea.

In the area of customs co-operation, Hungary should in particular finalise preparations for the implementation of the Naples II Convention.

Regarding judicial co-operation, Hungary should take further measures to ensure implementation of the Community instruments in the area of judicial co-operation in civil matters, notably as regards mutual recognition and enforcement of judicial decisions. Direct contacts between competent judicial authorities should be made possible.

Hungary has ratified all human rights legal instruments which are part of the Justice and Home Affairs acquis.

Conclusion

In its 1997 Opinion, the Commission concluded that Hungary was well on track to meet the justice and home affairs acquis within the next few years, assuming that progress continued at the current rate and effective training and institutional development programmes were implemented in the key justice and home affairs institutions.

Since the Opinion, progress has been steady in terms of legal alignment and building up the necessary administrative structures. Hungary`s legislation is almost entirely aligned with the acquis.

Negotiations on this chapter have been provisionally closed. Hungary has not requested any transitional arrangements in this area and is generally meeting the commitments it has made in the accession negotiations in this field.

In order to complete its preparations for membership, Hungary`s efforts now need to focus on finalising alignment (data protection, visa policy), on further improving its implementing and management capacities and the human and material resources of its law enforcement agencies, and on meeting the practical requirements of Schengen. The efforts should in particular focus on ensuring the implementation of its Schengen Action Plan according to the announced time schedule.

© European Commission; last modified 2003-05-21