US adds Hungarian minister Antal Rogán to sanctions list

The US Department of the Treasury's Office of Foreign Assets Control (OFAC) has officially added Antal Rogán, Head of the Cabinet Office of Hungarian Prime Minister Viktor Orbán, to its Specially Designated Nationals and Blocked Persons (SDN) List.

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January 08, 2025

Rationale Behind the Sanctions

On January 7, 2025, OFAC announced sanctions against Rogán for his involvement in corruption, under Executive Order 13818, which supports the Global Magnitsky Human Rights Accountability Act. This list prohibits US entities from doing business with those designated. Rogán is currently the only Hungarian citizen on the updated list due to this specific statute, although another Hungarian previously faced sanctions for different reasons linked to Russia.

Bradley T. Smith, Acting Undersecretary of the Treasury, emphasized the negative impact of corruption on governance and economic development, stating that corrupt officials like Rogán would be held accountable.

Context of Corruption in Hungary

The OFAC statement highlighted a decade-long decline in public sector integrity in Hungary. Transparency International's 2023 Corruption Perceptions Index ranked Hungary lowest in the EU for two consecutive years. The EU has also suspended funding to Hungary over concerns related to rule of law and corruption.

Whistleblower accounts describe the Hungarian government as a "kleptocracy," indicating a concerning lack of transparency in public expenditure. Due to these unresolved issues, Hungary has reportedly lost over one billion Euros in EU funding, adversely affecting its citizens.

Rogán is noted for his influential role in Hungarian public procurement and his connections to loyal business allies within the Fidesz party. The sanctions restrict any financial transactions involving Rogán's assets within the US or by US persons unless explicitly authorized by OFAC. Financial institutions engaged with Rogán may also face penalties.

This sanction has been anticipated in diplomatic conversations for some time, with speculation surrounding Rogán's potential inclusion on the US sanctions list. As the political landscape changes with the incoming presidency, US Ambassador David Pressman intends to remain in Hungary until mid-January.

For more detailed information, visit Telex.