Financial Crime World

Terrorist Financing Risks in Austria Remain High, Says FATF

Vienna, December 15, 2017

A recent report by the Financial Action Task Force (FATF) has identified several key areas where Austria needs to improve its efforts to combat terrorist financing.

Key Findings and Recommendations

Improving Risk Assessment and Regulatory Framework

  • The FATF assessment notes that while significant progress has been made in some areas, there are still risks of terrorist financing remaining high in the country.
  • Austria needs to improve its ability to identify and assess the risk of terrorist financing, particularly in relation to non-profit organizations.

Enhancing Cooperation and Coordination

  • The report highlights the need for improved cooperation and coordination between different government agencies and financial institutions to prevent the misuse of charitable activities for terrorist purposes.
  • Austria’s efforts to combat terrorist financing are hampered by a lack of resources and expertise in some areas, including its financial intelligence unit.

Implementing Targeted Financial Sanctions

  • The FATF report notes that Austria’s laws and regulations relating to targeted financial sanctions against terrorism and terrorist financing are adequate, but their implementation requires improvement.
  • The country needs to enhance its monitoring and reporting requirements related to these sanctions.

Recommendations for Improvement

  • Strengthen Customer Due Diligence Requirements: Improve customer due diligence requirements for financial institutions
  • Enhance Record-Keeping Practices: Enhance record-keeping practices
  • Strengthen Internal Controls: Strengthen internal controls and foreign branches and subsidiaries
  • Improve International Cooperation: Improve cooperation and coordination with other countries in the fight against terrorist financing
  • Enhance Mutual Legal Assistance: Enhance mutual legal assistance and extradition arrangements

Conclusion

By implementing these recommendations, Austria can reduce the risks of terrorist financing and contribute to a safer financial system for all. The FATF report highlights the need for Austria to continue making progress in addressing the risks of terrorist financing, including improving its risk assessment, regulatory framework, and international cooperation.