Act IV of 1978 on the Criminal Code GENERAL ... - Legislationline

For the purposes <strong>of</strong> Section 288, financial assistance provided by a foreign state or international organization shallalso cover the funds managed by Hungarian administrative agency or financial institution on behalf <strong>of</strong> the foreign stateor international organization. Section 288 shall not apply to criminal acts involving assistance provided from fundsmanaged by or on behalf <strong>of</strong> the European Communities and to payments made to funds managed by or on behalf <strong>of</strong> theEuropean Communities.(1) The person whoinfringes annual reporting, bookkeeping and auditing obligation,the documentation systemprescribed in the Accounting <strong>Act</strong> or in the legal regulations adopted under its authorization, and thereby obstructs thetransparency or inspection <strong>of</strong> his financial situation is guilty <strong>of</strong> a misdemeanor punishable by imprisonment not toexceed two years, work in community service or a fine.(2) Any private entrepreneur who violates his record keeping and documentation obligation prescribed by law, andthereby obstructs the transparency or inspection <strong>of</strong> his financial situation shall be punished according to Subsection (1).(3) The punishment shall be imprisonment not exceeding three years if the act defined in Subsection (1)results in an error corrupting the true and fair view in relation to the given financial year and distorts the amount <strong>of</strong>pr<strong>of</strong>it, equity capital or the balance sheet total, orobstructs the transparency or inspection <strong>of</strong> financial situation in the given year.(4) The punishment for felony shall be imprisonment not to exceed three years in the case <strong>of</strong> Subsection (1) or fiveyears in the case <strong>of</strong> Subsection (3) if committed in a financial institution, insurance institution or investment firm.(1) The person, who - in case <strong>of</strong> insolvency which has occurred within the sphere <strong>of</strong> his economic activity -conceals, keeps secret, damages, destroys, makes unusable any property serving as cover for his debt,concludes a fictitious transaction, or recognizes a doubtful claim,commences or continues a loss-generating business in a way contrary to the requirements <strong>of</strong> reasonablemanagement,diminishes actually or fictitiously his property in a way contrary to the requirements <strong>of</strong> reasonable economy,and thereby frustrates partially or wholly the satisfaction <strong>of</strong> his creditors, commits a felony, and shall be punishablewith imprisonment <strong>of</strong> up to five years.(2) The punishment shall be imprisonment from two years to eight years, if the action defined in subsection (1) hadgrave consequences in economic life.(3) The person who frustrates partly or wholly the satisfaction <strong>of</strong> his creditors by bringing about his becominginsolvent or the fiction there<strong>of</strong> with one <strong>of</strong> the conducts described in subsection (1), commits a felony, and shall bepunishable with imprisonment <strong>of</strong> up to five years.(4) The punishment shall be imprisonment from two years to eight years, if the act defined in subsection (3) hasgrave consequences in economic life.