Financial Crime World

Austria Fights Financial Crime: Laws and Regulations in Place

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Vienna - Money laundering and terrorist financing are serious concerns for Austria’s financial sector. To combat these crimes, the country has implemented various laws and regulations, ensuring that financial institutions and entities take necessary measures to prevent illegal activities.

Defining Money Laundering

According to Section 165 of the Austrian Criminal Code (StGB), money laundering is defined as the concealment of illegal income from certain criminal activities. Every financial center bears the risk of being misused for money laundering, making it essential for institutions to have robust anti-money laundering (AML) and combating the financing of terrorism (CFT) measures in place.

The Financial Markets AML Act

The Financial Markets AML Act has consolidated provisions on preventing the use of the financial system for money laundering and terrorist financing. This law ensures uniform application of AML/CFT obligations and facilitates supervision by the Financial Market Authority.

Client Identification

In Austria, every client must identify themselves when:

  • Establishing a permanent business relationship with a financial institution
  • Performing transactions valued at EUR 15,000 or more outside of a permanent business relationship
  • Depositing or paying out savings exceeding EUR 15,000
  • When suspicions arise about money laundering or terrorist financing

Identification is performed using official photo ID, and additional information may be required for clients who are minors or legal entities.

Reporting Suspicion of Money Laundering or Terrorist Financing

Suspicion of money laundering or terrorist financing must be reported to the money laundering unit of the Austrian Federal Ministry of the Interior.

Implementation of EU Directives

The EU’s 4th Anti-Money Laundering Directive (2015/849) has been implemented in Austria, and the country is also working towards implementing the 5th Anti-Money Laundering Directive (2018/843).

Global Standards and National Risk Assessment

The Financial Action Task Force (FATF) has played a crucial role in setting global standards for combating money laundering and terrorist financing. Austria’s National Risk Assessment 2021 identified various risks to the sectors concerned, including high-risk third countries with strategic deficiencies.

Austria is committed to utilizing its resources effectively and taking preventive action to combat financial crime.

Reporting Requirements

In addition to these measures, Austria has also implemented reporting requirements aimed at preventing illegal movements of cash for unlawful purposes such as money laundering and terrorist financing.

Compliance and Monitoring

The country’s Financial Market Authority ensures that financial institutions comply with AML/CFT regulations, while the FATF monitors Austria’s progress in combating financial crime.

Conclusion

As a result, Austria is considered to be in compliance with global standards for combating money laundering and terrorist financing.