Changes in corporate criminal liability in Hungary: plea deals for companies

Corporate responsibility for criminal offences

The growing prevalence of organised crime has highlighted the need for more robust measures to hold companies accountable when crimes are committed using corporate structures. Thus, in the case of certain criminal offences such as fraud, bribery or money laundering, not only the individual perpetrator but also the company involved – or being used – can be held criminally liable.

What is a plea deal?

From next year onwards, a company subject to criminal proceedings will be able to enter into an agreement – commonly referred to as a "plea deal" – with the prosecution.

At present, such agreements are only available to individual perpetrators, leaving companies in a passive defensive role rather than enabling them to actively cooperate with the authorities.  Furthermore, an individual perpetrator cannot negotiate on behalf of the company, even indirectly.  For example, an individual cannot offer to disclose the details of the offence in exchange for the company repaying the damage caused by the criminal action. This is particularly problematic, as in most corporate crimes, the financial benefit is realised by the company itself – such as in cases of tax evasion or corrupt procurement practices. Excluding companies from the possibility of voluntary restitution is therefore illogical.

The new reforms address this anomaly, allowing companies to enter into agreements with the prosecution.

Conditions for plea deals

A company may enter a plea deal if it acknowledges its involvement in the criminal offence and undertakes to compensate the damage caused, restore any harmful consequences or surrender any illicit gains to the authorities. The company must also ensure that no repeat offences occur. Another requirement is that the company must cooperate with the authorities by providing all necessary information, data, documents and other evidence, as well as paying the agreed funds.

If the company's representative (e.g. the managing director) is also an accused in the criminal proceedings, a plea deal will only be possible if they admit to the offence. A safeguard is also in place: a company that enters into an agreement with the prosecution cannot be dissolved, and any other sanctions may only be imposed to the extent specified in the agreement.

Opportunities for cooperation

Cooperation will not be limited to the investigative stage. Even if the investigation has concluded and the case is already before the criminal court, the company will still have the opportunity to enter into an agreement during the preparatory hearing. In such cases, the matter may be resolved at an early stage.

Ongoing proceedings

The new rules, which will come into effect on 1 January 2026, will – subject to certain exceptions – also apply to ongoing criminal proceedings. As a result, companies already under criminal investigation will also be affected by these reforms, encouraging them to take a more active role in criminal proceedings when it comes to defence, cooperation, voluntary restitution and plea deals.

authors: Alexandra Bognár, Noémi Suller