Financial Crime World

Consequences of Financial Crime in Austria: A Growing Concern

======================================================

The financial sector in Austria faces significant risks from money laundering and terrorist financing, which can have devastating consequences for individuals, businesses, and the economy as a whole.

Punishable by Law

In Austria, both money laundering and terrorist financing are punishable by law (§§ 165 and 278d of the Austrian Criminal Code). Money laundering involves concealing the illegal origins of income from certain criminal activities, while terrorist financing refers to providing assets for the perpetration of a terrorist act.

To combat these threats, Austria has implemented various legal measures. The Financial Markets AML Act aims to prevent the misuse of financial systems for money laundering and terrorist financing purposes. Obliged entities in the non-financial sector are also required to implement anti-money laundering (AML) and counter-terrorism financing (CFT) measures.

Client Identification

In Austria, clients must identify themselves in certain situations, including when:

  • Establishing a permanent business relationship with a financial institution
  • Performing transactions valued at €15,000 or more

Identification is typically performed using official photo ID, while additional documentation may be required for:

  • Minors
  • Legal entities
  • Trust relationships

Reporting Suspicious Activities

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

International Cooperation

Austria is a member of the Financial Action Task Force (FATF), an international organization established to combat money laundering and terrorist financing. The FATF sets global standards for combating these threats and provides guidance to its member countries.

National Risk Assessment

Austria has conducted a National Risk Assessment (NRA) in accordance with FATF requirements. The NRA identifies key sectors vulnerable to money laundering and terrorist financing and provides guidance for authorities and obliged entities on how to prevent these threats.

Conclusion

==========

Financial crime is a significant concern in Austria, and efforts must be made to prevent its occurrence. By implementing robust anti-money laundering and counter-terrorism financing measures, Austria can protect its financial sector and economy from the devastating consequences of financial crime.