Financial Crime World

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Financial Crime Definition in Austria: A Comprehensive Overview

Austria has strict laws in place to combat financial crime, including money laundering, terrorism financing, and fraud. These offenses are defined under the country’s Criminal Code and carry severe penalties.

Money Laundering

In Austria, money laundering is defined as the concealment of the illegal origins of income from certain criminal activities, such as prior criminal offenses. This includes:

  • Hiding or concealing the origin of assets obtained through crime
  • Making false statements about the origin or nature of these assets
  • Taking possession of, storing, investing, administering, transforming, utilizing, or transferring to a third person any assets that are proceeds of one of the listed offenses

The potential punishment for money laundering is:

  • Imprisonment for up to three years if the offense is committed in relation to a value exceeding €50,000
  • Up to 10 years if the offense is committed as a member of a criminal organization formed for the purpose of laundering money on a continuing basis

Terrorism Financing

Terrorism financing is defined as providing or collecting funds intending that they be used, in whole or in part, to commit various terrorist offenses. These offenses include:

  • Hijacking an aircraft
  • Kidnapping for ransom
  • Attacks against internationally protected persons
  • Other serious crimes

The potential punishment for terrorism financing is imprisonment for up to 10 years.

Fraud

Fraud is defined as deceiving another person about material facts with the intention of gaining an unlawful material benefit. This includes:

  • Making false statements or misrepresenting information to cause financial or other material loss to another person or a third party

The potential punishment for fraud is:

  • Imprisonment for up to six months or a monetary fine not exceeding 360 penalty units
  • Up to three years in cases of aggravated fraud
  • Up to 10 years if damages exceed €300,000

Principal and Secondary Offenses

Austria does not distinguish between primary and secondary offenses. However, there is a concept of a higher qualification of the crime if it is committed with means that are driven by a higher criminal mind or if the damage caused or the object of the crime has a higher financial value. This can increase the range of the applicable fine or sentence.

Predicate Offenses

Predicate offenses are felonies or other serious crimes that are used as a basis for money laundering, terrorism financing, or fraud. These include:

  • Intentional offenses punishable by imprisonment for life or more than three years
  • Counterfeiting legal documents
  • Other serious criminal offenses

De Minimis Rules

There is no general de minimis rule for money laundering, terrorism financing, and fraud offenses in Austria. However, the prosecution authority or criminal court can terminate a proceeding due to its minor nature if it determines that the negative impact of the offense is minor.