Financial Crime World

Austria Tightens Financial Transaction Rules to Combat Money Laundering and Terrorist Financing

The Austrian government has taken significant steps to strengthen its financial transaction rules, aimed at combating money laundering and terrorist financing. The new regulations are designed to prevent the misuse of the country’s financial system for illicit purposes.

New Identification Requirements

Under the new rules, all clients must identify themselves in certain circumstances, including:

  • Establishing a permanent business relationship with a financial institution
  • Performing transactions worth EUR 15,000 or more outside of a permanent business relationship
  • Depositing or paying out savings of EUR 15,000 or more
  • Cases where there are suspicions of money laundering or terrorist financing

Identification is done using official photo ID. In the case of minors or legal entities, proof of the representative’s identity and power of representation must also be provided.

Consolidation of Provisions

The Financial Markets AML Act, which came into effect on January 1, 2017, consolidates provisions related to preventing the use of financial systems for money laundering and terrorist financing in one law. The act is designed to ensure uniform application of anti-money laundering/counter-terrorism financing (AML/CFT) obligations and facilitate supervision by the Financial Market Authority.

EU Directives and International Standards

Austria has transposed EU directives into national law, including the 4th Money Laundering Directive, which requires financial institutions to report suspicious transactions to the money laundering unit of the Austrian Federal Ministry of the Interior. The country’s anti-money laundering efforts are also guided by international standards set by the Financial Action Task Force (FATF), an independent organization that sets globally uniform standards for combating money laundering and terrorist financing.

National Risk Assessment

The country’s National Risk Assessment, conducted in accordance with FATF requirements, identifies the risks to the sectors concerned by analyzing prevailing threats and vulnerabilities. The assessment aims to enable authorities and obliged entities to utilize their resources effectively and take preventive action.

Statistics and Review

Austria has published statistics according to Article 44 para. 3 of the 4th Anti-Money Laundering Directive, providing a consolidated review of its systems to combat money laundering or terrorist financing.

Ongoing Efforts

The new regulations are part of Austria’s ongoing efforts to strengthen its financial system and prevent illegal activities. The country’s commitment to combating money laundering and terrorist financing is reflected in its membership of international organizations such as the FATF and its participation in global initiatives aimed at promoting financial stability and security.

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