The US sanctions one of Orbán’s most powerful ministers, citing corruption

The US Department of the Treasury's Office of Foreign Assets Control (OFAC) has updated its list of Specially Designated Nationals and Blocked Persons (SDN List), which now includes Antal Rogán, the head of Hungarian Prime Minister Viktor Orbán's Cabinet Office.

The SDN List (Specially Designated Nationals and Blocked Persons List) is the official sanctions list maintained by the Office of Foreign Assets Control (OFAC) within the US Department of the Treasury. It lists individuals, companies and entities that have been placed under financial and economic sanctions by the US government for various reasons. It is prohibited to do business in the United States with anyone on the list. OFAC regularly updates the list in light of international sanctions and political situations.

A press release has also been published on the matter. The press release states that OFAC announced on 7 January that it would impose sanctions against Antal Rogán, a senior official in the Hungarian government, for his involvement in corruption. He is being designated pursuant to Executive Order (E.O.) 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse and corruption around the world.

There is no Hungarian citizen other than Antal Rogán on the updated list based on the Global Magnitsky Human Rights Inquiry Act (there is one other Hungarian citizen on the list, who was added before, but not based on the Global Magnitsky Human Rights Accountability Act, but because of sanctions against Russia: Imre Laszlóczki, the Vice President of the Russian-backed International Investment Bank.)

In the statement, Bradley T. Smith, Acting Undersecretary of the Treasury for Terrorism and Financial Intelligence emphasized the harmful effects of corruption: "Corruption undermines a country’s governing institutions and limits its economic development, providing short-sighted gain to a select few while depriving future generations of longer-term benefit. The United States will not hesitate to hold accountable individuals like Rogan, who use the power of their office to illicitly enrich themselves and their cronies at the expense of their country and their fellow citizens.”

According to the statement, public sector corruption has been worsening in Hungary over the past decade. They cite Transparency International's Corruption Perceptions Index from 2023, according to which Hungary has been ranked the lowest in the European Union for two consecutive years. They also note that the European Union suspended funding over concerns with breaches of the principles of rule of law in Hungary, including those related to public procurement, conflict of interest, and the fight against corruption.

The statement further points out that whistleblowers warning of abuses in Hungary have described the government as a "kleptocracy", with a notable lack of transparency and equity in public and private expenditure deals made between administrators such as Rogán and loyalist business leaders. The statement also reminds that due to Hungary's failure to address the above-mentioned transparency issues, Hungary has recently lost over one billion Euros in future funding from the European Union, which places Hungarian citizens at a disadvantage.

The statement underlines that Antal Rogán is a key figure in the Hungarian government, currently head of the Cabinet Office of Prime Minister Viktor Orbán. In addition, his ministry includes several important governmental organisations, such as the National Communications Office, which organises the communication of state institutions and signs framework agreements for communication. The statement here also mentions the Hungarian Tourism Agency, which used to be under Rogán's ministry, but has been under the supervision of the Ministry of National Economy since early 2024.

They also write that Rogán has been a Member of Parliament since 1998 and has played a major role in steering the Hungarian public procurement system and public funds into the hands of business circles loyal to Fidesz. According to the US government, Rogán has built a network of corruption designed to control strategic sectors of the Hungarian economy and channel their revenues to himself and to loyalists from his political party.

According to OFAC, Antán Rogán was sanctioned under Executive Order 13818 as a foreign government official responsible for or directly complicit in the following types of corruption:

• misappropriation of state assets;
• expropriation of private assets for personal gain;
• corruption related to government contracts;
• or the exploitation of natural resources;
• or bribery.

Under the US sanctions, all property and interests in property of Antal Rogán that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any assets that are in the possession of U.S. persons that are linked to Antal Rogán are blocked. In addition, any economic entity in which Rogán directly or indirectly owns 50 percent or more of the shares will also be blocked.

Under US law, any transaction involving the sanctioned person's assets or interests is prohibited unless specifically authorized by OFAC. This prohibition applies to all transactions that are conducted through US-based financial institutions and to any transaction involving US interests.

Financial institutions and other organisations engaging in certain transactions or activities with Rogán or his interests could also face sanctions, the statement said.

According to the statement, The United States seeks to impose tangible and significant consequences on those who commit serious human rights abuse or engage in corruption, as well as to protect the financial system of the United States from abuse by these same persons.

The possibility of Hungarian government officials, even members of the government, might be placed on the US sanctions list has been rumoured in diplomatic circles for some time. Rogán's name has also been mentioned.

According to our information, US Ambassador David Pressman will remain in Hungary until mid-January, and the Biden administration presumably wanted to sanction Antal Rogán before the new President Donald Trump takes office on 20 January.

The Hungarian State News Agency (MTI) has not reported on the news that the United States has placed Antán Rogán, the Minister in charge of the PM's Cabinet on its sanctions list.

There were two entries in MTI about the news by quarter to six in the evening. One of them was the reaction of Minister of the Prime Minister’s Office Gergely Gulyás, and the other was the reaction of Foreign Minister Péter Szijjártó, who said that "this is the personal revenge against Antal Rogán of the ambassador sent to Hungary by the failed US administration, who is leaving here without success and without any glory".

In our article a year ago, we detailed the cases in which Antal Rogán's name has surfaced in recent years.

Who else did the Americans sanction besides Antal Rogán on Tuesday?

In addition to Antal Rogán, two other individuals were placed on the sanctions list by the US administration on Tuesday, both in connection with the civil war in Sudan. However, they were not added to the Magnitsky List, as Rogán was, but to the US administration's Sudan sanctions list.

According to the US administration, Mohamed Hamdan Dagalo, known only as Hemedti, commander of the Rapid Support Forces (RSF) militia, is responsible for destabilising Sudan and was therefore placed on the sanctions list. Under his leadership, the RSF has committed "a litany of documented war crimes and atrocities, including ethnically motivated killings and sexual violence as a weapon of war".

The other sanctioned person is Abu Dharr Abdul Nabi Habiballa Ahmmed, also from Sudan, who is accused by the US administration of funnelling money and weapons to the RSF through his front company in the United Arab Emirates.