Financial Crime World

Money Laundering in Austria: What You Need to Know

Austria, as a significant financial hub in Southeast, Central, and Eastern Europe, has a robust economy with a high standard of living. However, the country is not immune to money laundering activities, which are often linked to fraud, corruption, arms smuggling, tax evasion, and human trafficking.

What is Money Laundering?

Money laundering is defined in Austria as the concealment of illegal income derived from criminal activities such as fraud, smuggling, and human trafficking. The country has strict laws and regulations in place to prevent and punish these crimes.

Austria’s Anti-Money Laundering Regime

  • Financial institutions in Austria, including banks, casinos, and money transfer services, are required to comply with anti-money laundering (AML) regulations.
  • These institutions must implement Customer Due Diligence (CDD) and Know Your Customer (KYC) measures to identify customers and assess risks.

International Evaluation

The Financial Action Task Force (FATF), an international organization that evaluates countries’ AML efforts, has reviewed Austria’s compliance with its 40 Recommendations. In its latest review, Austria was found to be compliant with 18 of the recommendations and not on the list of countries with strategic AML deficiencies.

Regulatory Bodies

Austria’s anti-money laundering regulators include:

  • Federal Ministry of Justice
  • Federal Ministry of Finance
  • Financial Market Board
  • Austrian National Bank
  • FATF

The country must also comply with EU AML directives, including the 4th Anti-Money Laundering Directive (4AMLD).

Laws and Regulations

Austria has drafted several laws to prevent money laundering, including:

  • Lawyers’ Act
  • Insurance Supervision Act
  • Banking Act
  • Gambling Act
  • Trade Act
  • Code on Notaries Public
  • Stock Exchange Act
  • E-Money Act
  • Payment Services Act
  • Securities Supervision Act
  • Investment Funds Act

Reporting Suspicious Transactions

Financial institutions in Austria are required to report suspicious transactions to the authorities. This includes reporting:

  • Transactions worth €15,000 or more
  • Any suspected money laundering activities

Staying Compliant with AML Regulations

Austrian companies can turn to innovative tools such as Sanction Scanner, which offers a range of solutions to help navigate the complex financial landscape. With its cutting-edge technology and expert guidance, Sanction Scanner is dedicated to ensuring the security and stability of Austria’s financial sector.