Financial Crime World

Austria Outlines Definition of Financial Fraud, Penalty Framework

The Austrian government has outlined a clear definition and penalty framework for financial fraud, a criminal offense designed to mislead individuals or entities into making economic decisions that result in material damage.

What is Financial Fraud?

Financial fraud occurs when a perpetrator deliberately misrepresents facts to a victim, causing the latter to make a mistake that leads to the disposal of an asset. This disposal of an asset results in material damage to the deceived person or a third party, while simultaneously enriching the perpetrator or another individual.

Key Elements of Financial Fraud

  • The criminal intent behind the fraudulent act must be to unjustly enrich oneself or another person through the actions of the deceived individual.
  • Material damage must occur to the victim or a third party for the fraud to be considered complete.

Penalties for Financial Fraud in Austria

The penalty for financial fraud in Austria ranges from:

  • A fine of up to 360 daily rates
  • A custodial sentence of up to six months, depending on the severity of the offense

More severe penalties are imposed if the damages exceed:

  • 5,000 euros: with a maximum custodial sentence of three years
  • 300,000 euros: with a custodial sentence of one to ten years

The legal basis for financial fraud in Austria is outlined in sections 146 and 147 of the country’s penal code, also known as the Strafgesetzbuch (StGB). The European Commission has translated this information into multiple languages to facilitate understanding and compliance with Austrian laws by individuals and entities from around the world.

Summary

Austria’s definition of financial fraud emphasizes the deliberate misrepresentation of facts, causing material damage to victims or third parties. The penalty framework ranges from fines to custodial sentences, depending on the severity of the offense. Understanding these laws is crucial for individuals and entities seeking to comply with Austrian regulations and avoid criminal liability.