Financial Crime Cases on the Rise in Austria: Authorities Clamp Down on Money Laundering and Terrorist Financing
Austria has been grappling with an increasing number of financial crime cases, particularly in relation to money laundering and terrorist financing. In response, the country’s authorities have stepped up efforts to combat these illegal activities, introducing new laws and regulations to prevent their misuse.
Money Laundering and Terrorist Financing: An Overview
- Money Laundering: The concealment of illegal income from certain criminal activities.
- Terrorist Financing: Providing assets for the perpetration of a terrorist act.
- Both are subject to penalty under Austrian law (§§ 165 and 278d of the Austrian Criminal Code).
The Financial Markets AML Act: Strengthening Prevention Measures
The Financial Markets AML Act has concentrated provisions on the prevention of money laundering and terrorist financing in one financial supervisory law, ensuring uniform application of anti-money laundering/counter-terrorist financing (AML/CFT) obligations. The new law has also facilitated supervision by the Financial Market Authority.
Identification Requirements for Clients
In Austria, clients must identify themselves under certain circumstances, including:
- Establishing a permanent business relationship with a financial institution
- Performing transactions worth €15,000 or more outside of a permanent business relationship
- Depositing or paying out savings worth €15,000 or more
- When suspicions arise about money laundering or terrorist financing
Identification is performed using official photo ID, and in cases where the client is a minor or legal entity, additional documentation must be provided.
Reporting Suspicion of Money Laundering or Terrorist Financing
Suspicion of money laundering or terrorist financing must be reported to the money laundering unit of the Austrian Federal Ministry of the Interior.
European Union’s Role in Combating Financial Crime
The European Union has also played a significant role in combating financial crime. Directive (EU) 2015/849 on the prevention of money laundering and terrorist financing was implemented, and Austria has published statistics according to Article 44 para. 3 of the directive.
Financial Action Task Force (FATF): Global Standards for Combating Financial Crime
The FATF, an independent anti-money laundering organization, has established globally uniform standards for combating money laundering and terrorist financing. Austria was examined by the FATF in 2015/2016 and is currently in Enhanced Follow-up Process.
National Risk Assessment 2021: Identifying Risks to Sectors Concerned
In addition, Austria has carried out a National Risk Assessment 2021 to identify risks to sectors concerned and enable authorities and obliged entities to take effective preventive action. The assessment report is available on the FATF website.
Conclusion: Continued Vigilance and Cooperation Needed
The rise of financial crime cases in Austria highlights the need for continued vigilance and cooperation between authorities to prevent and combat money laundering and terrorist financing.