Austria’s Financial Institutions Take Steps to Combat Corruption, But Room for Improvement Remains

Strengthening Anti-Corruption Efforts

In a bid to prevent and combat corruption across various sectors, Austria has adopted the National Anti-Corruption Strategy 2023-2025. Developed by the Federal Bureau of Anti-Corruption (BAK) and Ministry of Justice, the strategy sets out objectives to mitigate public integrity risks related to human resource management, internal control, and risk management.

Evaluation Report Highlights Areas for Improvement

According to a recent evaluation report, Austria fulfills 67% of OECD criteria on the quality of its strategic framework and 47% for implementation in practice. While this is an improvement from previous years, the country still lags behind other developed nations in terms of combating corruption.

Progress Made in Lobbying Regulations

One area where Austria has made significant progress is in lobbying regulations. The country’s laws define lobbying activities and require transparency in lobbying efforts, exceeding OECD standards in both regulation and practice. However, there is still room for improvement, as Austria does not require the disclosure of targeted legislation or regulations, limiting the transparency provided by its lobbying register.

Conflict of Interest Regulations Need Strengthening

In contrast, Austria’s conflict of interest regulations are more limited, with only 22% compliance with OECD standards in practice. While regulations define incompatibilities and submission procedures for interest declarations, there is no systematic verification of declarations or resolution of conflict-of-interest cases.

Political Finance Framework Has Its Strengths and Weaknesses

Austria’s political finance framework also has its strengths, with stringent limits on campaign expenses, comprehensive reporting requirements, and mandatory public disclosure of party finances. However, the country does not have a ban on anonymous donations or a register for contributions made to political parties and/or candidates.

Transparency in Public Information Remains an Issue

Transparency in public information is another area where Austria falls short, with only 44% compliance with OECD standards in regulations and 35% in practice. While the country’s laws entitle every person to submit requests for information, there are restrictions on access to public information that are not in line with international standards.

Financial Institutions Take Steps to Improve Anti-Corruption Policies

Despite these challenges, Austria’s financial institutions have taken steps to improve their anti-corruption policies. The Ministry of Interior (BMI) serves as a central government body responsible for anti-corruption efforts, while the Co-ordination Centre for Combating Corruption and Organized Crime coordinates efforts across various sectors.

Path Forward

As Austria continues to work towards strengthening its anti-corruption measures, it is clear that there is still much work to be done. By improving transparency in public information, strengthening conflict of interest regulations, and increasing access to political finance data, Austria can better combat corruption and ensure a more transparent and accountable government.

Key Recommendations

• Improve transparency in public information by removing restrictions on access to public information
• Strengthen conflict of interest regulations by implementing systematic verification of declarations and resolution of conflict-of-interest cases
• Increase access to political finance data by introducing a ban on anonymous donations and creating a register for contributions made to political parties and/or candidates
• Continue to improve anti-corruption policies in financial institutions and across various sectors