The law on whistleblower protection which came into force in January 2014 is seriously deficient. It does not establish a designated agency to protect persons who make whistleblowing reports or a specialised procedure to examine whistleblower reports. The law does not encourage people to report abuses and has not introduced new and proactive investigative techniques to examine reported incidents of corruption. The law introduced the “protected electronic system”, an anonymous reporting channel for whistleblowers operated by the ombudsman. However, so far this has not proven to be an important step forward. There is an absence of effective and robust methods to examine incidents of corruption, and reports made through the “protected electronic system” are not adequately followed. The ombudsman’s function is in reality restricted to receiving reports and forwarding them to the competent authorities. Provisions on private sector whistleblowing expect companies to lay information on corruption reported to them before the authorities, making companies hesitant about adopting compliance programmes. This is regrettable as reform in this area is urgently needed. A 2012 survey of leading Hungarian businesses conducted by Transparency International Hungary showed that one-third had no mechanism to protect employees who disclose wrongdoing. The new law contributes to a flourishing culture of corruption in Hungary by reinforcing existing oversight systems that have failed to control and uncover malpractice and corruption.