Austria Country Summary

FATF Status

Austria is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest Follow-up Report & Technical Compliance Re-Rating was completed in November 2018. According to that Evaluation, Austria was deemed Compliant for 18 and Largely Compliant for 18 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 3 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Austria has made significant strides in addressing corruption, implementing a national anti-corruption strategy and participating in international conventions aimed at reducing corrupt practices. However, recent scandals and the influence of political affiliations in law enforcement appointments have raised concerns about the integrity of the political system, leading to calls for reforms in lobbying laws and greater transparency in political financing.

In terms of crime resilience, Austria exhibits a stable political environment and a robust legal framework that effectively tackles organized crime, although challenges remain in certain policy areas. The judicial system is independent and capable of prosecuting organized crime, while law enforcement agencies are well-equipped; nonetheless, issues such as slow-moving investigations and the need for improved anti-money laundering measures highlight areas for further enhancement.

Austria boasts a well-developed market economy characterized by political stability and a high standard of living, making it an attractive destination for foreign direct investment, especially in technology and research and development sectors. The economy is heavily export-oriented, with over 50% of its GDP coming from exports, primarily to EU partners like Germany and the United States, although it faced a recession in 2023 due to manufacturing slowdowns and high inflation rates. Challenges such as high labor costs, a complex regulatory environment, and energy price volatility continue to impact the investment climate, despite Austria's strong infrastructure and harmonious labor relations.