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Financial Sanctions Compliance in Austria: A Comprehensive Overview

Austria has a robust sanctions regime in place, aimed at implementing United Nations (UN) and European Union (EU) sanctions domestically. The country’s sanctions regime is primarily governed by the Sanctions Act 2010 (Sanktionengesetz 2010), which regulates the implementation of internationally binding sanctions.

Authority and Implementation

The Austrian National Bank is authorized to order measures to:

  • Freeze assets
  • Prohibit transactions
  • Seize or forfeit goods and means of transport owned or controlled by persons or entities subject to UN or EU sanctions

The Federal Government is also empowered to issue regulations to implement these measures.

Sanctions List and Licensing System

Austria maintains a list of sanctioned individuals and entities, but it does not have a comprehensive, publicly available list. Instead, the country relies on international sanctions lists implemented through Austrian legal provisions and EU regulations.

To prevent breaches of sanctions, Austria has a licensing or authorization system in place for the export of certain goods, including:

  • Weapons
  • Munitions
  • Chemicals
  • Dual-use items

The country also has an Investment Control Act, which regulates foreign direct investments and may deny authorizations if they pose a risk to national security or public order.

Penalties for Breaching Sanctions

Penalties for breaching sanctions can be severe, including:

  • Fines up to EUR 700,000 for companies
  • Imprisonment of up to five years for individuals
  • Fines up to EUR 20,000 for financial offenses such as importing or exporting goods without authorization

Regulatory Bodies

Key regulatory bodies in Austria include:

  • Austrian Ministry for Interior Affairs, responsible for implementing sanctions, except for financial sanctions, which are regulated by the Austrian National Bank (Österreichische Nationalbank)
  • Austrian Federal Ministry for Digital and Economic Affairs, administers regulations on the export of goods and foreign investments

Seeking Guidance

For further guidance on financial sanctions compliance in Austria, consult with a reputable law firm or seek advice from the relevant regulatory bodies.