Hungarian OTP bank closed accounts of officially recognized refugees, ombudsman is investigating

At the request of the Hungarian Helsinki Committee, the ombudsman has initiated proceedings against Hungary’s OTP Bank, as the human rights organization alleges that the bank arbitrarily closed the bank accounts of individuals who have been officially recognized by Hungarian authorities as refugees, subjecting them thereby to discriminatory treatment.

The Hungarian Helsinki Committee cited the case of a Russian psychologist, who was forced to leave Russia and has been living in Hungary since 2019. The individual was officially granted refugee status last year, but OTP unilaterally closed their bank account, which had at that point been active for six years. According to the organization, the Russian citizen attempted to update their records with the bank during a data verification process conducted to prevent money laundering, but the institution refused to accept their documents confirming their refugee status-including the official certificate issued by the Hungarian immigration authorities. OTP simply informed the individual that they must either voluntarily close their bank account or the bank would close it, which would result in them losing access to their money. They ultimately transferred their savings to an account they had previously opened at another bank.

According to the organization, many refugees living in Hungary have experienced a similar situation recently, including some whose funds were frozen by the bank and whose debit cards were deactivated. In order to use its services, OTP requires refugees to present a residence permit, but according to Helsinki, the condition is impossible to meet, and there is no Hungarian law stipulating it. The CSO has submitted a public interest claim to the Commissioner for Fundamental Rights, who has initiated proceedings against the financial institution.