Financial Crime World

Enhancing Regulatory Framework for Financial Crimes Reporting in Austria

Introduction

Austria has implemented robust regulations to combat money laundering and terrorist financing as a key financial hub in Central and Eastern Europe.

Economic Dependence on Industry, Services, and Agriculture

Austria’s economy is heavily dependent on industry, services, and agriculture, making it closely monitored by the European Union and international organizations.

Definition of Money Laundering

According to Austrian authorities, money laundering is defined as concealing illicit funds derived from crimes such as fraud, smuggling, and human trafficking. Strict laws and regulations govern financial institutions deemed high-risk, ensuring compliance with anti-money laundering (AML) and combating the financing of terrorism (CFT) provisions.

Recent Regulatory Changes

Austria’s regulatory framework has undergone significant changes in recent years. In 2016, the Financial Action Task Force (FATF) published its first review of Austria, highlighting areas for improvement. The latest follow-up report and technical compliance re-rating in 2018 demonstrated Austria’s commitment to AML/CFT efforts.

Staying Compliant with EU Directives

Austria must adhere to the 4th Anti-Money Laundering Directive (4AMLD), which requires national laws to be fully implemented. The country faces penalties if it fails to comply, having already been taken to court by the European Union.

Regulations and Laws

To ensure compliance with these directives, Austrian regulators have introduced various laws and regulations, including:

  • Lawyers’ Act
  • Insurance Supervision Act
  • Banking Act
  • Gambling Act
  • Trade Act
  • Code on Notaries Public
  • Stock Exchange Act
  • E-Money Act
  • Payment Services Act
  • Securities Supervision Act
  • Investment Funds Act

Customer Due Diligence and Know Your Customer Measures

Financial institutions in Austria must implement Customer Due Diligence (CDD) and Know Your Customer (KYC) measures to prevent anonymized transactions and identify potential money laundering risks. This involves verifying the identity of customers, employees, or partners.

Reporting Suspicious Activity

The Austrian authorities emphasize the importance of reporting suspicious activity. Financial institutions must submit a Suspicious Activity Report (SAR) in the following situations:

  1. Establishing a permanent business relationship with a customer
  2. Executing transactions worth €15,000 or more
  3. Receiving payments or deposits exceeding €15,000
  4. Suspecting money laundering or terrorist financing activities
  5. Identifying doubts about previously obtained identity data
  6. Serving customers who are minors or illegal persons

AML Solutions for Austria

Sanction Scanner provides innovative tools to help Austrian companies navigate the complex regulatory landscape and ensure compliance with various acts and regulations aimed at maintaining financial stability. Contact us today to learn more about our solutions and schedule a demo.