Austria’s Financial Sector Urged to Strengthen AML/CTF Reporting Obligations
In an effort to combat money laundering and terrorist financing, financial institutions in Austria are being reminded of their crucial role in reporting suspicious activities to the country’s Financial Intelligence Unit (A-FIU).
Requirements for Financial Institutions
Under Austrian law, obliged entities such as banks, insurance companies, and other financial institutions are required to submit detailed reports to the A-FIU if they have reason to suspect that a customer is involved in criminal activity or has failed to disclose trust relationships.
- Transactions related to asset components originating from various criminal activities must be reported
- Transactions connected to criminal organisations, terrorist groups, or terrorist financing must also be reported
Reporting Requirements for Large Transactions
Financial institutions are required to submit reports on all transactions exceeding EUR 100,000 or a currency of equivalent value, provided that the originator or beneficiary is from a non-cooperative country or territory. This includes transactions executed into or from accounts held at foreign credit institutions or financial institutions in such countries.
Reporting Requirements for Savings Deposits
Credit institutions also have an obligation to inform the A-FIU without delay about all requests to withdraw savings deposits if the customer’s identity has not yet been determined and the payout is intended to be made from a savings deposit with a credit balance of at least EUR 15,000 or a currency of equivalent value. This is aimed at preventing money laundering and terrorist financing through the misuse of savings deposits.
Consequences of Non-Compliance
As Austria continues to strengthen its anti-money laundering and counter-terrorist financing regime, financial institutions are urged to ensure they meet their reporting obligations under the law. Failure to do so can result in serious consequences, including fines and reputational damage.
It is essential for financial institutions in Austria to take these requirements seriously and maintain accurate records of all transactions and reports submitted to the A-FIU. By doing so, they can help combat money laundering and terrorist financing, while also protecting their reputation and avoiding potential legal consequences.