Financial Crime World

Austria’s Financial Sector Takes Steps Against Money Laundering and Terrorist Financing

Preventing Illegal Activities in the Financial System

Austria has taken significant steps to prevent money laundering and terrorist financing in its financial sector. The country has implemented various measures to ensure that its financial system is not misused for illegal activities.

Understanding Money Laundering and Terrorist Financing

  • Money Laundering: Concealment of the illegal origins of income from certain criminal activities.
  • Terrorist Financing: Providing assets, including legal ones, for the perpetration of a terrorist act.

Laws and Regulations to Prevent Illegal Activities

  • The Financial Markets AML Act ensures uniform application of anti-money laundering (AML) and combating the financing of terrorism (CFT) obligations by financial institutions.
  • The Austrian Trade Act, Gambling Act, and Codes of Professional Conduct for Attorneys at Law and Notaries contain provisions aimed at preventing money laundering and terrorist financing.
  • These laws place great emphasis on the principle of “know your customer,” which aims to deny money launderers the benefit of anonymity.

Reporting Suspicion of Money Laundering or Terrorist Financing

  • Suspicion must be reported to the Austrian Federal Ministry of the Interior’s money laundering unit.
  • The ministry is responsible for monitoring and investigating these cases.

European Union’s Role in Combating Money Laundering and Terrorist Financing

  • Directive (EU) 2015/849, also known as the 4th Anti-Money Laundering Directive, sets out common standards for AML and CFT across the EU.
  • Austria has implemented this directive into its national law.

Financial Action Task Force’s Role in Combating Money Laundering and Terrorist Financing

  • The FATF is an independent anti-money laundering organization that has set out 40 Recommendations for combating money laundering, which have been revised regularly to take into account the expansion of its mandate.
  • Austria was examined by the FATF in 2015/2016 and is currently in Enhanced Follow-up Process.

Commitment to Transparency and Cooperation

  • The Austrian government has committed to publishing statistics on money laundering and terrorist financing, as required under Article 44 para. 3 of the 4th Anti-Money Laundering Directive.
  • This move aims to increase transparency and cooperation among member states in combating these illegal activities.

Conclusion

Austria’s financial sector is taking significant steps to prevent money laundering and terrorist financing. The country’s laws and regulations are aimed at ensuring that its financial system is not misused for illegal activities, and its commitment to publishing statistics on these issues demonstrates its dedication to international cooperation in combating these crimes.