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Austria: Corporate Compliance and Liability

In Austria, companies are subject to various regulations and laws that govern their operations and interactions with customers. This article provides an overview of key aspects of corporate compliance and liability in Austria.

Criminal Liability

Companies can be held criminally liable for their employees’ actions if they have committed a crime while performing tasks assigned by the company. This is known as “organisational criminal liability”.

  • To establish organisational criminal liability, it must be proven that an offence was committed intentionally or negligently in connection with business operations.
  • Companies should implement measures to prevent and detect crimes committed by their employees.

Anti-Money Laundering

Companies are required to implement a proper compliance system to reduce their risk of criminal liability. While there are no general mandatory internal compliance measures for companies, implementing a compliance management system may result in certification according to international standards such as ISO 19600 and ISO 37001.

  • Companies should identify the beneficial owner of new business partners and document this information.
  • They should also assess anti-money laundering and terrorism financing risks associated with business relationships.

Customer Due Diligence

Companies are required to perform customer due diligence when entering into a business relationship. This includes:

  • Identifying the beneficial owner of a new business partner
  • Documenting this information
  • Assessing anti-money laundering and terrorism financing risks

Private Actions

Private actions can be brought in Austria for damages arising from money laundering, terrorism financing or fraud. Victims can also join criminal proceedings as private parties, which is a time and cost-effective way to seek compensation.

  • Damages are calculated by establishing causality between the criminal act and the damage suffered.
  • The court will compare the financial situation of the victim before and after the event to determine damages.

By understanding these regulations and laws, companies can ensure compliance and avoid potential liability in Austria.