Austria Enacts Strict Regulations to Combat Financial Crimes
Vienna, Austria - Implementing Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) Laws
In an effort to safeguard its financial system and align with European Union regulations, Austria has introduced a range of strict AML/CFT laws. As a member of the EU, Austria’s AML/CFT landscape is aligned with other countries within the bloc.
Key Players: The Financial Market Authority (FMA)
At the heart of Austria’s regulatory framework lies the Financial Market Authority (FMA), which serves as the country’s financial supervisory authority. The FMA works diligently to ensure that Austrian companies comply with the country’s financial regulations and implement 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 Fifth AMLD requirement that member states create publicly available beneficial ownership registers, Austria passed this act.
- Regulation on Savings Associations (SpVV): This regulation requires savings associations to conduct due diligence on their customers and report any suspicious activity to the FMA.
Ensuring Compliance
To ensure compliance with these regulations, companies in Austria must implement a risk-based AML/CFT solution. This includes conducting:
- Identity Verification: verifying the identity of customers
- Transaction Screening: monitoring transactions for suspicious activity
- Sanctions Screening: screening against sanctions lists
- PEP Screening: screening for Politically Exposed Persons (PEPs)
- Adverse Media Screening: screening for adverse media
Recent Developments: The EU AML/CFT Framework Overhaul
The EU recently announced an overhaul of its AML/CFT framework, which will introduce new legislative proposals and update the existing 6AMLD. As an EU member, Austria must implement these regulatory requirements, including:
- Cross-Border Asset Registers: introducing registers to track assets across borders
- Financial Intelligence Unit (FIU) Joint Analysis Framework: establishing a joint analysis framework for FIUs
Staying Ahead of the Regulatory Landscape
To stay ahead of its obligations in this changing regulatory landscape, companies in Austria can consider implementing next-generation AML technology. Ripjar’s Labyrinth Screening solution has been designed to enhance the risk management process and make AML/CFT compliance faster and simpler.
By understanding their regulatory obligations and implementing suitable internal measures and controls, companies in Austria can help protect its financial system and comply with EU regulations.