|
|
Sanctions:
As a member of the EU, the country is party to all EU Sanctions
as well as UN sanctions.
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2012
Austria is a major regional financial center, and Austrian banking
groups control significant shares of the banking markets in
Central, Eastern, and Southeastern Europe. Money laundering
occurs within the Austrian banking system as well as in non-bank
financial institutions and businesses. Money laundered by
organized crime groups derives primarily from serious fraud,
smuggling, corruption, narcotics trafficking, and trafficking in
persons. Theft, drug trafficking and fraud are the main predicate
crimes in Austria according to conviction and investigation
statistics. Austria is not an offshore jurisdiction and has no free
trade zones.
For additional information focusing on terrorist financing, please
refer to the Department of State’s Country Reports on Terrorism,
which can be found here: http://www.state.gov/j/ct/rls/crt/
Do Financial Institutions engage in currency transactions related
to international narcotics trafficking that include significant
amounts of US currency; currency derived from illegal sales in the
U.S.; or that otherwise significantly affect the U.S.: NO
Criminalization of Money Laundering:
“All serious crimes” approach or “list” approach to predicate
crimes: Combination
Legal persons covered: criminally: YES civilly: NO
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: NO
KYC covered entities: Banks and credit institutions, financial
institutions, leasing and exchange businesses, safe custody
services, portfolio advisers, brokers, securities firms, money
transmitters, insurance companies and intermediaries, casinos, all
dealers including those in high value goods, auctioneers, real
estate agents, lawyers, notaries, certified public accountants, and
auditors
Suspicious Transaction Reporting (STR) Requirements:
Number of STRs received and time frame: 2,211 in 2010
Number of CTRs received and time frame: Not applicable
STR covered entities: Banks and credit institutions, financial
institutions, leasing and exchange businesses, safe custody
services, portfolio advisers, brokers, securities firms, money
transmitters, insurance companies and intermediaries, casinos, all
dealers including those in high value goods, auctioneers, real
estate agents, lawyers, notaries, certified public accountants,
auditors, and customs officials
Money Laundering Criminal Prosecutions/Convictions:
Prosecutions: 582 in 2010
Convictions: Six in 2010
Records exchange mechanism:
With U.S.: MLAT: YES Other mechanism: YES
With other governments/jurisdictions: YES
Austria is a member of the Financial Action Task Force (FATF). Its
most recent mutual evaluation can be found here: http://www.fatf-
gafi.org/dataoecd/22/50/44146250.pdf
Enforcement and implementation issues and comments:
Austria has a combination of both an “all serious crimes”
approach plus a list of predicate offenses which do not fall under
the domestic definition of serious crimes, but which Austria
includes to comply with international legal obligations and
standards.
Asset freezing authority applies to all economic resources
including financial funds, real estate, companies, and vehicles. On
March 15, 2011, a bilateral asset sharing agreement between the
United States and Austria to share assets seized from convicted
criminals went into effect.
On July 7, 2011, Parliament adopted an amendment to the Stock
Corporation Act, which went into effect August 1, 2011 and
sharply restricts the issuance and use of bearer shares. The new
legislation eliminates bearer shares for all companies except
those listed on a recognized stock exchange.
Even absent a specific suspicion, new regulations require tax
authorities to inform the FIU of all cases where private foundations
do not disclose the founding deed, including all appendices and
supplementary documentation, as well as beneficial owners of
hidden trusteeships.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
Report not available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 1)
Austria is a destination and transit country for women, men, and
children subjected to sex trafficking and forced labor. Victims
originate from Eastern Europe, Africa, and Asia. An NGO reported
that Austrians spent $4.3 billion on domestic workers annually in
2009; exploitation is believed to be a problem in this sector. Some
involuntary domestic service reportedly involves diplomats from
Africa, Asia, Europe, and the Middle East. Forced labor also
occurs in the agricultural, construction, restaurant, and tourism
industries. Forced begging involving Roma children and others
from Eastern Europe continues to be a problem. An NGO that
works with Nigerian trafficking victims reported that traffickers
abuse the legal prostitution and asylum processes to control their
victims.
The Government of Austria fully complies with the minimum
standards for the elimination of trafficking. The government
continued to fund comprehensive services for identified female
victims of trafficking and continued its proactive efforts to prevent
domestic servitude in diplomatic households in Austria. In 2010,
the Austrian government convicted an increased number of
trafficking offenders and strengthened the severity of some of the
sentences imposed on them, but most traffickers continued to
receive less than one year in prison. Despite extensive outreach
efforts, it did not employ systematic procedures for the
identification and referral of victims, and deported at least one
trafficking victim who faced possible retribution from her exploiters
in her country of origin.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2010
Overview: Austria passed new legislation to outlaw participation in
terrorist training camps abroad, signed a bilateral agreement with
the United States on Preventing and Combating Serious Crime
(PCSC), and concluded a bilateral agreement, also with the United
States, on the sharing of forfeited assets from criminal activities.
Austria's Parliament adopted a government-sponsored
amendment package effective in July that brought its anti-money
laundering/countering terrorist financing (AML/CTF) regime more
in line with the Financial Action Task Force's (FATF) standards.
According to Austria's counterterrorism agency, the Bureau for
the Protection of the Constitution and Counterterrorism (BVT),
homegrown violent extremism and terrorism within transnational
networks constituted the greatest threat to Austria.
Counterterrorism experts noted a growing number of radicalized
individuals among second- and third-generation Muslim
immigrants and among converts to Islam.
Legislation and Law Enforcement: The BVT served as the key
counterterrorism agency within the Ministry of the Interior. An
internal review by the National Audit Court called on the Ministry
to increase the BVT's human resources for the fight against
terrorism, to train more analysts for the protection of critical
infrastructure, and to draft strategies for intercultural dialogue and
countering violent extremism.
Key counterterrorism legal initiatives included new legislation
criminalizing participation in terrorist training camps abroad,
signing of a bilateral Austrian-U.S. agreement on PCSC, and a
bilateral agreement on sharing confiscated assets from criminal
activities.
In February, a Vienna appellate court rejected the request for
early release from prison of a 22-year-old Muslim extremist and
her husband convicted in 2009 for making terrorist threats against
Austria on the Internet. In September, an Austrian court
sentenced the 2009 killer of a Sikh guru visiting Austria to life
imprisonment. This murder triggered violent riots in India in 2009.
In December, an alleged terrorist from Chechnya living in
Neunkirchen, Lower Austria, was arrested at Vienna's Schwechat
Airport upon his return from Saudi Arabia. The subject of a
European arrest warrant issued by Belgian authorities, the man
was allegedly part of a terrorist organization suspected of terrorist
activity. Extradition proceedings were pending at the end of the
year.
Countering Terrorist Finance: Austria closely followed EU policies
to fight terrorist financing. Austria has become a more active
member of the FATF. In reaction to FATF criticism of Austria in
2009, Austria's Parliament adopted a government-sponsored
amendment package, effective July 2010, which brought Austria's
AML/CTF regime more in line with FATF standards. The new
legislation extends the scope of money laundering offenses to self-
laundering, and broadens the conditions for disclosure of
information on bank accounts and bank operations during criminal
proceedings. It also facilitates processing of mutual legal
assistance requests, introduces stricter identification for savings
deposits and stronger due diligence obligations for banks, and
authorizes Austria's Financial Market Authority to issue
regulations mandating additional measures where there are
heightened risks, particularly in connection with states where
higher money laundering or terrorist financing risks exist. The
revised legal framework also provides for more transparency for
trusts and foundations and extends the power and responsibility
of Austria's Financial Intelligence Unit.
Austria's new Sanctions Act, effective July 1, 2010, facilitates
asset seizure, forfeiture, and other counterterrorism measures;
and asset freezes pursuant to UN and EU sanctions are based on
the Sanctions Law rather than on the Foreign Exchange Act. The
new law significantly expands and improves implementation of
financial sanctions on terrorists (including measures set forth in
directly applicable EU Regulations), expands the range of assets
seized, provides for banning travel, bans the rendering of
services to designated entities, and establishes administrative
and criminal penalties for violations. The Austrian government
used the new law, effective July 26, to implement enhanced EU
sanctions on Iranian entities.
Regional and International Cooperation: Austria has security
partnerships with several countries in the region and the Ministry
of the Interior has dispatched counterterrorism liaison officers to a
number of Austria's embassies in Southeastern Europe. Austria
participated in various regional security platforms, including the
Central European Initiative and the Salzburg Forum. It was a
founding member of the Pruem Treaty, an agreement among
various European states to exchange information regarding DNA,
fingerprints, and vehicle registration data of concerned persons
and to cooperate against terrorism. Austria chaired the al-
Qa'ida/Taliban 1267 Sanctions Committee during its two-year
tenure as a non-permanent member of the UNSC in 2009-2010.
Austria ratified the two 2005 Protocols on Suppression of Unlawful
Acts against the Safety of Maritime Navigation and Fixed
Platforms.
In October, Austria, Turkey, and Bosnia-Herzegovina co-
sponsored a workshop on national coordination and regional
cooperation in counterterrorism matters in Sarajevo. More than 15
countries and regional security organizations attended the UN-
organized event. In December, Austrian Interior Minister Maria
Fekter signed a cooperation protocol with Russia's Interior
Ministry codifying deportation and repatriation procedures for
illegal immigrants and Russian/Austrian criminals involved in
terrorism, money laundering, and human and drug trafficking.
Countering Radicalization and Violent Extremism: A main
component of Austrian efforts to counter violent extremism is to
support integration in a holistic way. The Austrian government
committed to a National Action Plan for Integration. Most initiatives
to promote integration were publicly subsidized and took place at
the local and regional level. A national integration award
promoted on national TV mobilized many schools and businesses
to submit creative project proposals.
Links:
Worldwide AML Legislation (International Bar Association)
As a member of the EU, the country is party to all EU Sanctions
as well as UN sanctions.
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2012
Austria is a major regional financial center, and Austrian banking
groups control significant shares of the banking markets in
Central, Eastern, and Southeastern Europe. Money laundering
occurs within the Austrian banking system as well as in non-bank
financial institutions and businesses. Money laundered by
organized crime groups derives primarily from serious fraud,
smuggling, corruption, narcotics trafficking, and trafficking in
persons. Theft, drug trafficking and fraud are the main predicate
crimes in Austria according to conviction and investigation
statistics. Austria is not an offshore jurisdiction and has no free
trade zones.
For additional information focusing on terrorist financing, please
refer to the Department of State’s Country Reports on Terrorism,
which can be found here: http://www.state.gov/j/ct/rls/crt/
Do Financial Institutions engage in currency transactions related
to international narcotics trafficking that include significant
amounts of US currency; currency derived from illegal sales in the
U.S.; or that otherwise significantly affect the U.S.: NO
Criminalization of Money Laundering:
“All serious crimes” approach or “list” approach to predicate
crimes: Combination
Legal persons covered: criminally: YES civilly: NO
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: NO
KYC covered entities: Banks and credit institutions, financial
institutions, leasing and exchange businesses, safe custody
services, portfolio advisers, brokers, securities firms, money
transmitters, insurance companies and intermediaries, casinos, all
dealers including those in high value goods, auctioneers, real
estate agents, lawyers, notaries, certified public accountants, and
auditors
Suspicious Transaction Reporting (STR) Requirements:
Number of STRs received and time frame: 2,211 in 2010
Number of CTRs received and time frame: Not applicable
STR covered entities: Banks and credit institutions, financial
institutions, leasing and exchange businesses, safe custody
services, portfolio advisers, brokers, securities firms, money
transmitters, insurance companies and intermediaries, casinos, all
dealers including those in high value goods, auctioneers, real
estate agents, lawyers, notaries, certified public accountants,
auditors, and customs officials
Money Laundering Criminal Prosecutions/Convictions:
Prosecutions: 582 in 2010
Convictions: Six in 2010
Records exchange mechanism:
With U.S.: MLAT: YES Other mechanism: YES
With other governments/jurisdictions: YES
Austria is a member of the Financial Action Task Force (FATF). Its
most recent mutual evaluation can be found here: http://www.fatf-
gafi.org/dataoecd/22/50/44146250.pdf
Enforcement and implementation issues and comments:
Austria has a combination of both an “all serious crimes”
approach plus a list of predicate offenses which do not fall under
the domestic definition of serious crimes, but which Austria
includes to comply with international legal obligations and
standards.
Asset freezing authority applies to all economic resources
including financial funds, real estate, companies, and vehicles. On
March 15, 2011, a bilateral asset sharing agreement between the
United States and Austria to share assets seized from convicted
criminals went into effect.
On July 7, 2011, Parliament adopted an amendment to the Stock
Corporation Act, which went into effect August 1, 2011 and
sharply restricts the issuance and use of bearer shares. The new
legislation eliminates bearer shares for all companies except
those listed on a recognized stock exchange.
Even absent a specific suspicion, new regulations require tax
authorities to inform the FIU of all cases where private foundations
do not disclose the founding deed, including all appendices and
supplementary documentation, as well as beneficial owners of
hidden trusteeships.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
Report not available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 1)
Austria is a destination and transit country for women, men, and
children subjected to sex trafficking and forced labor. Victims
originate from Eastern Europe, Africa, and Asia. An NGO reported
that Austrians spent $4.3 billion on domestic workers annually in
2009; exploitation is believed to be a problem in this sector. Some
involuntary domestic service reportedly involves diplomats from
Africa, Asia, Europe, and the Middle East. Forced labor also
occurs in the agricultural, construction, restaurant, and tourism
industries. Forced begging involving Roma children and others
from Eastern Europe continues to be a problem. An NGO that
works with Nigerian trafficking victims reported that traffickers
abuse the legal prostitution and asylum processes to control their
victims.
The Government of Austria fully complies with the minimum
standards for the elimination of trafficking. The government
continued to fund comprehensive services for identified female
victims of trafficking and continued its proactive efforts to prevent
domestic servitude in diplomatic households in Austria. In 2010,
the Austrian government convicted an increased number of
trafficking offenders and strengthened the severity of some of the
sentences imposed on them, but most traffickers continued to
receive less than one year in prison. Despite extensive outreach
efforts, it did not employ systematic procedures for the
identification and referral of victims, and deported at least one
trafficking victim who faced possible retribution from her exploiters
in her country of origin.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2010
Overview: Austria passed new legislation to outlaw participation in
terrorist training camps abroad, signed a bilateral agreement with
the United States on Preventing and Combating Serious Crime
(PCSC), and concluded a bilateral agreement, also with the United
States, on the sharing of forfeited assets from criminal activities.
Austria's Parliament adopted a government-sponsored
amendment package effective in July that brought its anti-money
laundering/countering terrorist financing (AML/CTF) regime more
in line with the Financial Action Task Force's (FATF) standards.
According to Austria's counterterrorism agency, the Bureau for
the Protection of the Constitution and Counterterrorism (BVT),
homegrown violent extremism and terrorism within transnational
networks constituted the greatest threat to Austria.
Counterterrorism experts noted a growing number of radicalized
individuals among second- and third-generation Muslim
immigrants and among converts to Islam.
Legislation and Law Enforcement: The BVT served as the key
counterterrorism agency within the Ministry of the Interior. An
internal review by the National Audit Court called on the Ministry
to increase the BVT's human resources for the fight against
terrorism, to train more analysts for the protection of critical
infrastructure, and to draft strategies for intercultural dialogue and
countering violent extremism.
Key counterterrorism legal initiatives included new legislation
criminalizing participation in terrorist training camps abroad,
signing of a bilateral Austrian-U.S. agreement on PCSC, and a
bilateral agreement on sharing confiscated assets from criminal
activities.
In February, a Vienna appellate court rejected the request for
early release from prison of a 22-year-old Muslim extremist and
her husband convicted in 2009 for making terrorist threats against
Austria on the Internet. In September, an Austrian court
sentenced the 2009 killer of a Sikh guru visiting Austria to life
imprisonment. This murder triggered violent riots in India in 2009.
In December, an alleged terrorist from Chechnya living in
Neunkirchen, Lower Austria, was arrested at Vienna's Schwechat
Airport upon his return from Saudi Arabia. The subject of a
European arrest warrant issued by Belgian authorities, the man
was allegedly part of a terrorist organization suspected of terrorist
activity. Extradition proceedings were pending at the end of the
year.
Countering Terrorist Finance: Austria closely followed EU policies
to fight terrorist financing. Austria has become a more active
member of the FATF. In reaction to FATF criticism of Austria in
2009, Austria's Parliament adopted a government-sponsored
amendment package, effective July 2010, which brought Austria's
AML/CTF regime more in line with FATF standards. The new
legislation extends the scope of money laundering offenses to self-
laundering, and broadens the conditions for disclosure of
information on bank accounts and bank operations during criminal
proceedings. It also facilitates processing of mutual legal
assistance requests, introduces stricter identification for savings
deposits and stronger due diligence obligations for banks, and
authorizes Austria's Financial Market Authority to issue
regulations mandating additional measures where there are
heightened risks, particularly in connection with states where
higher money laundering or terrorist financing risks exist. The
revised legal framework also provides for more transparency for
trusts and foundations and extends the power and responsibility
of Austria's Financial Intelligence Unit.
Austria's new Sanctions Act, effective July 1, 2010, facilitates
asset seizure, forfeiture, and other counterterrorism measures;
and asset freezes pursuant to UN and EU sanctions are based on
the Sanctions Law rather than on the Foreign Exchange Act. The
new law significantly expands and improves implementation of
financial sanctions on terrorists (including measures set forth in
directly applicable EU Regulations), expands the range of assets
seized, provides for banning travel, bans the rendering of
services to designated entities, and establishes administrative
and criminal penalties for violations. The Austrian government
used the new law, effective July 26, to implement enhanced EU
sanctions on Iranian entities.
Regional and International Cooperation: Austria has security
partnerships with several countries in the region and the Ministry
of the Interior has dispatched counterterrorism liaison officers to a
number of Austria's embassies in Southeastern Europe. Austria
participated in various regional security platforms, including the
Central European Initiative and the Salzburg Forum. It was a
founding member of the Pruem Treaty, an agreement among
various European states to exchange information regarding DNA,
fingerprints, and vehicle registration data of concerned persons
and to cooperate against terrorism. Austria chaired the al-
Qa'ida/Taliban 1267 Sanctions Committee during its two-year
tenure as a non-permanent member of the UNSC in 2009-2010.
Austria ratified the two 2005 Protocols on Suppression of Unlawful
Acts against the Safety of Maritime Navigation and Fixed
Platforms.
In October, Austria, Turkey, and Bosnia-Herzegovina co-
sponsored a workshop on national coordination and regional
cooperation in counterterrorism matters in Sarajevo. More than 15
countries and regional security organizations attended the UN-
organized event. In December, Austrian Interior Minister Maria
Fekter signed a cooperation protocol with Russia's Interior
Ministry codifying deportation and repatriation procedures for
illegal immigrants and Russian/Austrian criminals involved in
terrorism, money laundering, and human and drug trafficking.
Countering Radicalization and Violent Extremism: A main
component of Austrian efforts to counter violent extremism is to
support integration in a holistic way. The Austrian government
committed to a National Action Plan for Integration. Most initiatives
to promote integration were publicly subsidized and took place at
the local and regional level. A national integration award
promoted on national TV mobilized many schools and businesses
to submit creative project proposals.
Links:
Worldwide AML Legislation (International Bar Association)
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if any
of the Recommendations, R1, R5, R10, R13, SRII, SRIV are rated either Partially of
Non-Compliant.
The key Recommendations are R. 3, R. 4, R. 26, R. 23, R. 35, R. 36, R. 40, SR I, SR
III, and SR V. Such recommendations are carefully reviewed when considering
removal from the follow-up process.
Please also note that any risk assessment should take into consideration any
follow-up reports.
of the Recommendations, R1, R5, R10, R13, SRII, SRIV are rated either Partially of
Non-Compliant.
The key Recommendations are R. 3, R. 4, R. 26, R. 23, R. 35, R. 36, R. 40, SR I, SR
III, and SR V. Such recommendations are carefully reviewed when considering
removal from the follow-up process.
Please also note that any risk assessment should take into consideration any
follow-up reports.
| AUSTRIA |
| KnowYourCountry |
|
|
Key Findings from last Mutual Evaluation Report
The crime level in Austria is among the lowest in European Union (EU)
Member States, and the authorities consider that the country’s
exposure to money laundering (ML) and financing of terrorism (FT)
risks is limited. However, due to its geographical location and its
historical ties with Central, Eastern and Southeastern Europe (CESE)
countries, Austria may be used by foreign criminal organizations as a
transit point for drugs and other trafficking, as well as a destination for
criminal money, attracted by its reputation for political stability, tradition
of banking secrecy, and attractive tax regime.
The authorities have designed and are implementing a comprehensive
AML/CFT system, supported by well-developed federal administrative
and supervisory bodies, and active professional organizations.
Criminalization of ML is generally in line with the FATF standards, and
the legal framework provides for a wide range of confiscation and
provisional measures. However, the low number of convictions for ML,
low legal penalties and low amounts confiscated raise questions about
the overall effectiveness of the system. Criminal provisions for the FT,
although largely consistent with the 1999 United Nations (UN) Terrorist
Financing Convention, do not cover the full range of activities covered
by the FATF standard.
The transposition of the Third EU AML Directive resulted in a large
overhaul, expansion and strengthening of the Austrian AML/CFT regime
which now covers the broadest range of financial activities and
designated non-financial businesses and professions (DNFBPs), except
certain casinos. However, some provisions have to be brought more
closely into line with the FATF standards, and overall, more time is
needed before all requirements are fully implemented.
The supervisory system for financial institutions is generally sound and
efficient. Licensing requirements and the regime of sanctions need to
be strengthened, and additional resources should be allocated to
supervisory bodies.
The Austrian Financial Investigation Unit (A-FIU) is an effective police
unit, but it does not fulfill the suspicious transaction report (STR)
analysis and dissemination functions of an FIU. Possible disclosure of
information to the defendant, pursuant to the criminal procedure, may
contribute to the overall low level of reporting.
Legal provisions and jurisprudence provide gateways for the authorities
to obtain data protected by banking secrecy, but requests by public
prosecutors are subject to restrictive conditions that financial
institutions and legal professions may exploit to decline to supply
information.
While the registration system is generally well-developed, access to
beneficial ownership data of some non-profit organizations (NPOs),
legal arrangements (Treuhand) and some legal persons, notably
foundations and companies issuing bearer shares, is hindered.
Various fora have been established to ensure national cooperation and
coordination. The deficiencies noted in the domestic legal framework
slow down the provision of mutual legal assistance.
Key recommendations include: conduct a ML/FT risk assessment; align
the criminalization of ML/FT with the standards; widen the scope of
customer due diligence (CDD) obligations; ease legal requirements for
authorities to have access to information held by financial institutions
and legal professions; extend the functions of the A-FIU to analysis and
dissemination; broaden the STR provisions; strengthen licensing
requirements and available sanctions for financial institutions; align
preventive measures for DNFBPs with the FATF standards; ensure
adequate transparency of beneficial ownership of legal persons and
legal arrangements.
The crime level in Austria is among the lowest in European Union (EU)
Member States, and the authorities consider that the country’s
exposure to money laundering (ML) and financing of terrorism (FT)
risks is limited. However, due to its geographical location and its
historical ties with Central, Eastern and Southeastern Europe (CESE)
countries, Austria may be used by foreign criminal organizations as a
transit point for drugs and other trafficking, as well as a destination for
criminal money, attracted by its reputation for political stability, tradition
of banking secrecy, and attractive tax regime.
The authorities have designed and are implementing a comprehensive
AML/CFT system, supported by well-developed federal administrative
and supervisory bodies, and active professional organizations.
Criminalization of ML is generally in line with the FATF standards, and
the legal framework provides for a wide range of confiscation and
provisional measures. However, the low number of convictions for ML,
low legal penalties and low amounts confiscated raise questions about
the overall effectiveness of the system. Criminal provisions for the FT,
although largely consistent with the 1999 United Nations (UN) Terrorist
Financing Convention, do not cover the full range of activities covered
by the FATF standard.
The transposition of the Third EU AML Directive resulted in a large
overhaul, expansion and strengthening of the Austrian AML/CFT regime
which now covers the broadest range of financial activities and
designated non-financial businesses and professions (DNFBPs), except
certain casinos. However, some provisions have to be brought more
closely into line with the FATF standards, and overall, more time is
needed before all requirements are fully implemented.
The supervisory system for financial institutions is generally sound and
efficient. Licensing requirements and the regime of sanctions need to
be strengthened, and additional resources should be allocated to
supervisory bodies.
The Austrian Financial Investigation Unit (A-FIU) is an effective police
unit, but it does not fulfill the suspicious transaction report (STR)
analysis and dissemination functions of an FIU. Possible disclosure of
information to the defendant, pursuant to the criminal procedure, may
contribute to the overall low level of reporting.
Legal provisions and jurisprudence provide gateways for the authorities
to obtain data protected by banking secrecy, but requests by public
prosecutors are subject to restrictive conditions that financial
institutions and legal professions may exploit to decline to supply
information.
While the registration system is generally well-developed, access to
beneficial ownership data of some non-profit organizations (NPOs),
legal arrangements (Treuhand) and some legal persons, notably
foundations and companies issuing bearer shares, is hindered.
Various fora have been established to ensure national cooperation and
coordination. The deficiencies noted in the domestic legal framework
slow down the provision of mutual legal assistance.
Key recommendations include: conduct a ML/FT risk assessment; align
the criminalization of ML/FT with the standards; widen the scope of
customer due diligence (CDD) obligations; ease legal requirements for
authorities to have access to information held by financial institutions
and legal professions; extend the functions of the A-FIU to analysis and
dissemination; broaden the STR provisions; strengthen licensing
requirements and available sanctions for financial institutions; align
preventive measures for DNFBPs with the FATF standards; ensure
adequate transparency of beneficial ownership of legal persons and
legal arrangements.
Extracted from IMF Report - Austria: 2011 Article IV
Consultation (September 2011)
Significant progress has been achieved since the Financial Action Task
Force (FATF) identified strategic deficiencies in 2009. The February
2011 FATF follow-up report was very positive in light of the substantial
package of legal measures enacted in June and July 2010. Upcoming
actions will focus on effective implementation of the new legal
provisions, including the drafting of new or updated FMA circulars,
training of reporting entities and supervisors, as well as on-site
inspections.
Click here to view full report
Consultation (September 2011)
Significant progress has been achieved since the Financial Action Task
Force (FATF) identified strategic deficiencies in 2009. The February
2011 FATF follow-up report was very positive in light of the substantial
package of legal measures enacted in June and July 2010. Upcoming
actions will focus on effective implementation of the new legal
provisions, including the drafting of new or updated FMA circulars,
training of reporting entities and supervisors, as well as on-site
inspections.
Click here to view full report
| Last Updated: 16 April 2012 |