Financial Crime World

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Austria Steps Up Efforts to Combat Financial Crimes

Vienna - Austria has taken significant steps to strengthen its risk assessment and prevention mechanisms in the face of financial crimes, including money laundering and terrorist financing.

Money Laundering and Terrorist Financing Laws

Under Austrian law, money laundering and terrorist financing are punishable offenses (§§ 165 and 278d of the Austrian Criminal Code). Money laundering is defined as the concealment of illegal income from certain criminal activities, while terrorist financing refers to providing assets for the perpetration of a terrorist act.

Financial Markets AML Act

To combat these threats, Austria has implemented the Financial Markets AML Act, which consolidates provisions on preventing the use of the financial system for money laundering and terrorist financing. The law ensures uniform application of anti-money laundering/counter-terrorism financing (AML/CFT) obligations and facilitates supervision by the Financial Market Authority.

Additional Provisions

In addition to this legislation, other provisions can be found in various laws, including:

  • Austrian Trade Act: Emphasizes the principle of “know your customer” aimed at denying money launderers anonymity.
  • Gambling Act: Regulates gambling activities and ensures transparency in financial transactions.
  • Codes of Professional Conduct for Attorneys at Law and Notaries: Requires lawyers and notaries to identify their clients and report suspicious activities.

Client Identification

Austrian clients must identify themselves in certain circumstances, including:

  • Establishing a permanent business relationship with a financial institution
  • Performing a transaction worth EUR 15,000 or more outside of a permanent relationship
  • Depositing or paying out savings exceeding EUR 15,000
  • When there are suspicions of money laundering or terrorist financing

Reporting Suspicious Activities

Suspicion of money laundering or terrorist financing must be reported to the money laundering unit of the Austrian Federal Ministry of the Interior.

European Level Commitments

Austria is committed to combating financial crimes through its membership in the Financial Action Task Force (FATF). The FATF has established a set of 40 Recommendations for combating money laundering, which have been revised regularly and have become an internationally recognized standard. The organization’s mandate was expanded in 2008 to include combating the proliferation of weapons of mass destruction.

Country Assessment and National Risk Assessment

In 2015/2016, Austria underwent a country assessment by the FATF, which evaluated compliance with the standards, including in non-member countries. The assessment report was published in September 2016 and is available on the FATF website. Austria is currently in Enhanced Follow-up Process, with the first Enhanced Follow-up Report published in December 2017.

In addition, Austria has carried out a National Risk Assessment 2021, which identifies risks to sectors concerned by analyzing prevailing threats and vulnerabilities. The assessment is intended to enable authorities and obliged entities to utilize resources in a targeted manner and take effective preventive action.

Statistics

Austria publishes statistics according to Article 44 para. 3 of the 4th Anti-Money Laundering Directive, providing a consolidated review of its systems to combat money laundering or terrorist financing.