Austria Fails to Fully Enforce Anti-Money Laundering Protocols, Says Global Watchdog

Financial Action Task Force Criticizes Austrian Banking Sector

VIENNA, AUSTRIA - In a scathing report released yesterday, the Financial Action Task Force (FATF) said that Austria has failed to adequately enforce anti-money laundering protocols in its banking sector.

Key Findings of the Report:

Weaknesses in customer due diligence
Inadequate record keeping and reporting of suspicious transactions
Significant gaps in implementing risk-based approaches to customer due diligence
Failure to effectively use financial intelligence units

Progress Made Since 2017 Evaluation:

Austria has made some progress in strengthening its anti-money laundering framework since the last evaluation in 2017
However, significant gaps remain, particularly with regards to implementation of risk-based approaches and effective use of financial intelligence units

Risks to Banking Sector:

Austria’s banking sector is at risk of being exploited by money launderers and terrorist financiers due to inadequate controls and lack of cooperation between law enforcement agencies and financial institutions

Recommendations for Improvement:

Strengthening anti-money laundering laws and regulations
Improving customer due diligence and reporting requirements
Enhancing international cooperation on money laundering and terrorist financing

Consequences of Non-Compliance:

Failure to comply with these recommendations could result in Austria being placed on a list of “high-risk” jurisdictions maintained by FATF, which would have significant consequences for the country’s financial sector and economy

Austrian Finance Minister Urged to Act Swiftly

The report has sparked concerns among Austrian lawmakers and civil society groups, who are calling on the government to take immediate action to address the weaknesses in its anti-money laundering regime.

“It is unacceptable that Austria continues to fail to adequately enforce anti-money laundering protocols. We urge the finance minister to take swift action to implement the recommendations outlined in this report and ensure that our financial sector is safe from money launderers and terrorist financiers.”

Commitment from Finance Minister Hartwig Löger:

“We take these findings very seriously and will work diligently to implement the recommendations outlined in this report. We are committed to ensuring that our financial sector is compliant with international standards on anti-money laundering and terrorist financing.”