Austria

New Documents

The Austrian Financial Market Authority released the latest edition of its “Let’s Talk About Money” guiding series on techniques used to legitimize illegal assets.

The Austrian Financial Market Authority released a statement concerning fraud schemes involving purported employees of the regulator.  

Enforcement Actions

The Financial Market Authority of Austria imposed sanctions against the Austria-based investment company for regulatory breaches, including violations of anti-money laundering and counterterrorist financing obligations.

The Financial Market Authority of Austria imposed sanctions against the Austria-based financial institution for regulatory breaches, including due diligence, anti-money laundering, and counterterrorist financing obligations.


Important Facts

  • The U.S. State Department classifies Austria as a jurisdiction of primary concern because it is a major financial center. Austrian banking groups control significant shares of the banking markets in Central, Eastern and Southeastern Europe. Money laundering occurs to some extent within the Austrian banking system as well as in nonbank financial institutions and businesses. Organized crime groups typically launder proceeds derived from fraud, smuggling, corruption, narcotics trafficking and human trafficking. Austrian conviction and investigation statistics reveal that theft, drug trafficking and fraud are the main predicate crimes in the country. Casinos and gambling are legal; casinos must comply with their anti-money laundering and combating the financing of terrorism obligations. Migrant workers in Austria send money home via all available channels, including regular bank transfers, money transmitters, as well as informal and illegal remittance systems. However, there is no evidence to prove that money is being laundered through these channels.
  • KYC Covered Entities: Banks and credit institutions; domestic financial institutions authorized to conduct financial leasing, safe custody, portfolio and capital consulting, credit reporting, and mergers and acquisitions services; brokers and securities firms; money transmitters and exchanges; insurance companies and intermediaries; casinos; all goods dealers; auctioneers and real estate agents; lawyers, notaries, certified public accountants, and auditors
  • STR Covered Entities: Banks and credit institutions; domestic financial institutions authorized to conduct financial leasing, safe custody, portfolio and capital consulting, credit reporting, and mergers and acquisitions services; brokers and securities firms; money transmitters and exchanges; insurance companies and intermediaries; casinos; all goods dealers; auctioneers and real estate agents; lawyers, notaries, certified public accountants, auditors, and customs officials
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: No
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 336 (2013); Convictions: 8 (2013)
-Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 methodology

Technical Effectiveness
Compliant : 18 High : 0
Largely Compliant : 18 Substantial : 3
Partially Compliant : 4 Moderate : 6
Non-Compliant : 0 Low : 2

Austria's technical compliance was re-rated in a Nov. 22, 2018 follow-up report.

BASEL i

Rank : 109/141
Score : 4.38/10

TRANSPARENCY INTERNATIONAL i

Rank : 15/180
Score : 76/100

Tax Justice Network i

Rank : 36/133
Score : 56/100