Austria Tightens Bowels on Money Laundering and Financial Crime with Robust Anti-Money Laundering Regulations
Safeguarding the Financial System Against Money Laundering and Terrorism Financing
VIENNA, AUSTRIA - In a bid to safeguard its financial system against money laundering and terrorism financing, Austria has implemented a range of stringent anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations.
Addressing the Challenges of Financial Crime
As one of the wealthiest countries in Europe and the world, Austria is a magnet for international investment, attracting hundreds of multinational organisations including banks and fintechs. However, this also creates a significant challenge in preventing financial crime, including money laundering and terrorist financing.
The Role of the FMA
At the heart of Austria’s AML/CFT framework is the Financial Market Authority (FMA), which provides supervision for all financial service providers in the country. The FMA works to ensure that Austrian companies comply with the country’s financial regulations, including implementing suitable internal measures and controls to detect and prevent money laundering and terrorism financing.
Key AML Regulations in Austria
Austria has implemented several key AML/CFT regulations, including:
- The Financial Markets AML Act: This Act requires companies in Austria to put suitable risk-based AML/CFT measures and controls in place and to report suspicious activity to the FMA.
- The Beneficial Owners Register Act: In response to the EU’s Fifth AMLD requirement that member states create publicly available beneficial ownership registers, Austria passed this Act.
- Other regulations issued by the FMA, including the Regulation on Savings Associations (SpVV), School Savings Schemes Due Diligence Regulation (Schulspar-SoV), Online Identification Regulation (Online-IDV), and others.
Ensuring AML Compliance in Austria
To ensure compliance with Austrian AML/CFT regulations, companies in Austria must put a risk-based approach to AML/CFT in place. This includes:
- Identity verification: Establishing and verifying the identities of customers by collecting suitable customer due diligence information.
- Transaction screening: Screening customer transactions for signs of suspicious activity that may be indicative of money laundering.
- Sanctions screening: Ensuring that companies are not doing business with targets of international sanctions.
- PEP screening: Screening customers against Politically Exposed Persons (PEP) lists at onboarding and throughout the business relationship.
- Adverse media screening: Implementing an adverse media screening solution to capture news stories from around the world that involve customers.
Recent AML/CFT Developments in Austria
The EU recently announced an overhaul of its AML/CFT framework, which includes introducing cross-border asset registers, a proposal for a Financial Intelligence Unit (FIU) joint analysis framework, new guidance on beneficial ownership registers, and strengthened whistleblower protections. As an EU member, Austria must implement the regulatory requirements of the updated 6AMLD.
Next Generation AML Technology
Ripjar’s Labyrinth Screening solution has been designed to enhance the risk management process and make AML/CFT compliance in Austria faster and simpler. Harness next-generation name-matching software to screen customers in real-time, drawing data from global sanctions, watch lists, and adverse media sources across 21 languages. Use AI-enabled AML technology to inform risk decisions and ensure your business stays ahead of its obligations in a changing regulatory landscape.
Contact Us
Contact us to discuss how Ripjar can support your AML compliance in Austria. Our team is dedicated to helping you navigate the complex world of AML regulations and ensuring that your business stays ahead of the curve.