Austria’s Efforts to Combat Financial Crime and Terrorism Funding Face Scrutiny
The Financial Action Task Force (FATF) has released a report assessing Austria’s progress in addressing financial crime and terrorism funding. The report, published on December 15, 2017, highlights areas where Austria needs to improve its technical compliance.
Key Issues Identified by the FATF Report
Risk Assessment and Risk-Based Approach
- Austria’s risk assessment is inadequate
- Lack of application of a risk-based approach in AML/CFT measures
National Cooperation and Coordination
- Inadequate national cooperation and coordination in combating financial crime
- Insufficient information sharing between authorities
Asset Confiscation and Targeted Financial Sanctions
- Failure to confiscate assets related to money laundering and terrorist financing
- Inadequate implementation of targeted financial sanctions related to terrorism and proliferation
Customer Due Diligence and Record-Keeping
- Inadequate customer due diligence requirements
- Poor record-keeping practices
Reliance on Third Parties, Internal Controls, and Reporting of Suspicious Transactions
- Over-reliance on third parties for AML/CFT measures
- Insufficient internal controls in place
- Inadequate reporting of suspicious transactions
Regulation and Supervision of Financial Institutions
- Inadequate regulation and supervision of financial institutions
- Limited powers of supervisors to enforce AML/CFT regulations
Deadline and Future Monitoring
Austria has been given a deadline to address these issues and implement the necessary reforms to bring itself into compliance with international standards. The FATF will continue to monitor Austria’s progress and assess its implementation of AML/CFT measures in future reports.
Expert Insights and Government Response
Experts agree that the report highlights the need for Austria to take concrete steps to improve its financial regulation and supervision, as well as its cooperation with other countries to combat financial crime and terrorism funding. Failure to do so could result in sanctions and damage to Austria’s reputation as a reliable partner in international finance.
In response to the report, Austrian officials have pledged to implement the necessary reforms and take action to address the issues raised by the FATF. The government has committed to strengthening its AML/CFT regime and improving its cooperation with other countries to combat financial crime and terrorism funding.