Financial Crime World

Austria Cracks Down on Financial Crimes: Money Laundering, Terrorist Financing, and Proliferation Financing

Austria, as a key European financial hub, has strict penalties for money laundering and terrorist financing under §§ 165 and 278d of its Criminal Code (StGB). In this article, we will discuss the legal foundation of Austria’s fight against financial crimes, its adherence to European Union regulations, and its collaboration within the Global community.

Austria’s efforts against money laundering and terrorist financing are centralized, making regulation application and enforcement more effective. The following acts govern these issues in Austria:

Financial Markets Anti-Money Laundering Act

  • Uniform application of anti-money laundering and countering terrorist financing (AML/CFT) obligations
  • Clients must identify themselves before establishing a business relationship, performing transactions of €15,000 or more, or depositing/withdrawing €15,000 or more
  • Official photo ID is used to verify clients’ identities, and additional proof for minors, legal entities, and trust relationships

European Union Regulations

Austria complies with several EU regulations to prevent financial crimes:

Directive (EU) 2015/849

  • The 4th Anti-Money Laundering Directive
  • Requires member states to implement its provisions into domestic law
  • Financial sector had already complied by 2018
  • Non-financial sector undergoing implementation

Regulation (EU) 2015/847

  • Requires every transfer of funds to be accompanied by specific payer and payee data

Regulation (EC) No. 1889/2005

  • Reporting of cash valuables of €10,000 or more entering or leaving the EU

Rooted in the Global Effort

International collaboration is crucial in the fight against financial crimes. The Financial Action Task Force (FATF), an international organization, plays a significant role.

The Financial Action Task Force (FATF)

  • Established in Paris in 1989
  • Uniform standards for combating money laundering, terrorist financing, and proliferation financing
  • Assesses countries’ AML/CFT frameworks
  • Drafts national and regional action plans
  • Provides political pressure to countries with insufficient regulations

In 2008, the FATF extended its mandate to address strategic deficiencies related to weapons of mass destruction proliferation financing.

Staying Vigilant

Austria, a highly-evaluated member of the FATF, continuously evaluates its systems to combat financial crimes. In 2015/2016, Austria underwent an assessment. The report is available on the FATF website. Austria is currently in the Enhancement Follow-up Process.

The 5th Anti-Money Laundering Directive requires member states to conduct National Risk Assessments. Austria recently conducted the National Risk Assessment 2021. Statistics on Austria’s systems to combat money laundering, terrorist financing, and proliferation financing will be published in the future.

Note: The article’s headings, subheadings, and bullet points were created to improve readability and organization.