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Cash convoy controversy: Orbán ally’s firm transported billions to Ukraine for years
Hungary’s growing cash convoy scandal has taken a new turn after reports revealed that a company owned by a close ally of Prime Minister Viktor Orbán had been transporting large cash shipments destined for Ukraine for years, with the knowledge of Hungarian authorities.
According to multiple sources cited by Hungarian outlet Telex, the cash logistics company Criterion Készpénzlogisztikai Kft. (Criterion Cash Logistics), owned by businessman István Garancsi, regularly moved large sums of money from Vienna to the Hungarian–Ukrainian border.
The shipments were part of a legal banking operation transferring currency from Austrian financial institutions to Ukrainian banks since the outbreak of the Russian invasion of Ukraine.
Hungarian authorities reportedly knew about the operation for years.
Authorities previously coordinated the transports
Sources familiar with the logistics say the transports typically took place weekly, sometimes even several times a week. The cash – often worth hundreds of millions – was flown from the United States to Vienna before being transported by armoured vehicles to Hungary.
Criterion staff would reportedly collect the money from Austrian banks in the early morning, transport it to Budapest, and then move it onward to the Ukrainian border at Záhony. There, Ukrainian teams would take over the shipment and continue the journey to Kyiv.
These operations were conducted with strict security protocols. Armed guards and surveillance teams accompanied the convoys, and authorities, including the Hungarian police and the National Tax and Customs Administration of Hungary (NAV), were aware of the movements. In some cases, Austrian police assistance was also requested.
Industry sources say such transports were fully legal and followed international banking procedures.
The convoy that sparked the scandal
The controversy erupted last week when Hungarian authorities stopped two Ukrainian-registered armoured vehicles on the M0 motorway near Budapest.
“The shipments were part of a legal banking operation transferring currency from Austrian financial institutions to Ukrainian banks since the outbreak of the Russian invasion of Ukraine.”
Hehehe, no.
Just because a corrupt dictator claims his moneylaundeing operation is “perfectly legal” does not mean, it is. The same is true for a bank. Them saying they are not guilty is not conclusive evidence that they actually are.
As I wrote previously, Hungary did know, that the money laundering goes on. But choose not to rock the boat.
Now, that Ukraine crossed the line, the gloves came off, and the law is being upheld against Ukrainian corrupt oligarchs personal interests.
But think of this:
When banks transfer money, they do it through wire 99.9999% of the time.
When they physically transfer money, they 99.999% transfer only 1 currency, so they would transfer Euros exclusively, not US dollars in case of an Austrian bank. Because an Austrian bank can get unlimited Euros, but has to trade for dollars.
And, because banks don’t think gold is money, they transfer exactly 0% of the time gold, as part of a money transfer.
The fact it’s a physical transfer is already highly unusual. The fact that they use multiple currencies is borderline unprecedented. And the fact that they bring gold in a money convoy, together with 2 fiats is literally unprecedented in 21st century history of banking.
So yes, Hungary has a very good reason to be suspicous of money laundering, and to investigate it.
And the fervor of people involved claiming they are innocent leans to being “denied too much” to be false. Or whatever the English phrase is.