Hungary introduces new register of companies excluded from public procurement and pathways to removal

The purpose of the register is to exclude companies from public tenders where the company itself, or its executive officer, supervisory board member, managing director or beneficial owner, is subject to a final, binding court judgment establishing the commission of specified criminal offences, provided that certain other technical conditions for registration are also met. The Authority describes the measure as an important step towards Hungary regaining access to EU funding.

Legal basis and qualifying offences

The exclusion ground stems from Section 62(1)(a) of Hungary's Public Procurement Act (Kbt.), which lists the categories of criminal offences that trigger exclusion. In broad terms these cover:

1. participation in a criminal organisation, including offences committed within a criminal organisation;
2. bribery, trading in influence and the purchase of influence (including in international relations), as well as breach of trust in the management of assets and corruption offences;
3. budgetary fraud and offences against the financial interests of the European Communities;
4. terrorist acts and related incitement, aiding or attempt;
5. money laundering and the financing of terrorism;
6. human trafficking and forced labour, including exploitation of trafficking victims;
7. agreements restricting competition in public procurement and concession procedures; and
8. comparable offences under the economic operator's own national law.

Exclusion applies until the date determined by the Integrity Authority or, failing such determination, for four years from the day on which the court's final decision becomes binding, unless the disadvantages attaching to the criminal record cease earlier.

How the register will operate and pathways to removal

According to the Authority, the register is not solely punitive in nature. Businesses may pursue a so-called self-cleaning procedure, under which they can demonstrate that, following the circumstances giving rise to exclusion, they have taken measures sufficient to restore their reliability. A successful self-cleaning application allows a company to avoid registration altogether or, if already listed, to be removed from the register.

The Authority conducts the self-cleaning procedure ex officio and electronically. Where an affected business wishes to make substantive submissions, it must present and document, at a minimum, that it has:

1.    compensated the damage caused by the offence to the extent accepted by the injured party, or has undertaken a binding commitment to do so within a set deadline;
2.    comprehensively clarified the facts and circumstances of the case through active cooperation with the competent authorities; and
3.    implemented technical, organisational and personnel measures capable of preventing further offences.

The Authority is required to evaluate the submitted evidence within 20 days of receipt, taking into account the severity and specific circumstances of the offence, before deciding whether to place the company on the register.

Public access and rationale

The register is publicly accessible through the Electronic Public Procurement System. The Authority has stressed that publication is intended primarily to prevent further abuses and to safeguard the integrity of public procurement, rather than to stigmatise the companies concerned, noting that the affected group is precisely and narrowly defined by law.

Context: EU funding and broader anti-corruption reforms

The launch of the register follows a government resolution (1246/2026 (VIII.7.) Korm. határozat) and a related Ministry of Justice resolution (1/2026 (VIII.11.) IM határozat), which triggered the opening of the first registration proceedings. Commentary on the measure has linked it to the wider package of anti-corruption and public procurement reforms that Hungary has been advancing as a condition for the resumption of European Union funding, following earlier steps such as measures addressing pricing irregularities and overpricing risks in public tenders.

Practical implications

For contracting authorities, the register offers a further, publicly verifiable exclusion-ground check to run alongside existing self-declaration and verification procedures in tender evaluation. For businesses, and particularly their executive officers, supervisory board members, managing directors and beneficial owners, the launch underscores the importance of monitoring exposure to the underlying offences and, where relevant, preparing a self-cleaning submission promptly, given the Authority's 20-day evaluation period and severity-based assessment.