Austria Cracks Down on Financial Crimes: Money Laundering, Terrorism Financing, and Fraud Defined and Punished
Austria, known for its historic cities, beautiful Alpine landscapes, and vibrant cultural scene, is making headlines for its determined efforts to combat financial crimes. In this article, we will provide an overview of how money laundering, terrorism financing, and fraud are defined and punished under Austrian law.
Money Laundering
Austrian law defines money laundering as concealing the illegal origins of income obtained from certain criminal activities. Money laundering is addressed under Section 165 of Austria’s Criminal Code. This includes making false statements or permitting the control, transfer, or utilization of assets derived from illegal activities.
- Punishment: The penalty for money laundering can result in imprisonment for up to three years and a fine.
- Continuing Criminal Organization: If the offense is committed as a member of a continuing criminal organization that launders money, the penalty increases to one to 10 years in prison.
Terrorism Financing
Terrorism financing is committed when someone provides or collects funds with the intention they be used for the commission of specific terrorism-related offenses. These offenses include hijacking an aircraft, kidnapping, and creating nuclear hazards. Terrorism financing is addressed under Section 278d of the Austrian Criminal Code and carries a potential punishment of one to ten years’ imprisonment.
Fraud
Fraud is defined as an intentional act to gain an unlawful material benefit by deceiving another person about material facts. Fraud can occur through various means, such as false or forged documents or misrepresentations. Section 146 of the Austrian Criminal Code addresses fraud.
- Punishment: The penalty for fraud can result in imprisonment for up to six months or a monetary fine.
- Aggravated Fraud: Aggravated fraud, which involves using false documents or causing substantial damages, can result in up to ten years’ imprisonment.
Predicate Offenses
Under Austrian law, there is no explicit definition of predicate offenses. However, these crimes are commonly understood as the basis for money laundering or other financial crimes. Predicate offenses include felonies, offenses against property punishable by imprisonment for more than one year, and various other offenses such as counterfeiting legal documents and misdemeanors under financial laws relating to tax evasion.
No De Minimis Rules
There is no general de minimis rule for financial crimes in Austria. The prosecution authority or the criminal court has the right to terminate a proceeding if they deem it to be of minor nature. The suspect’s guilt, consequences of the offense, and their behavior after committing the offense, as well as their efforts to make amends, are all considered when deciding the severity of the punishment. The penalty should not be imposed solely to deter the suspect or the general public, but rather based on the specifics of the case.
Stay tuned for more articles exploring the legal landscape of various countries and topics. To read more about financial crimes in other jurisdictions, visit our website.