Austria's measures to combat money laundering and terrorist financing

Publication details

Language

English

Country

Austria

Mutual Evaluation Report Austria - 2016

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MER-Austria-2016.pdf
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2 MB
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12 September 2016 - Austria has an overall sound legal and institutional anti-money laundering and counter-terrorist financing (AML/CFT) framework, but improvements are still needed in national policy coordination, assessment of risk, and targeted financial sanctions. Austria also needs to improve its effectiveness in applying these and a range of other measures, as detailed below.

The FATF conducted an assessment of Austria’s AML/CFT system, based on the 2012 FATF Recommendations, and using the 2013 Methodology. The assessment is a comprehensive review of the effectiveness of Austria’s AML/CFT system and its level of compliance with the FATF Recommendations.

Austria has a good understanding of the terrorist financing risks, and its CFT system exhibits many characteristics of an effective system for investigating and prosecuting those involved in terrorist activities. But, despite its position as an international financial centre, Austria does not pursue money laundering and confiscation as a priority.

In general, the Financial Market Authority has a sound understanding of money laundering and terrorist financing risks present in the institutions it supervises. Based on this understanding, it has developed strategies using supervisory tools to risk-rate the institutions it regulates. However, a lack of adequate resources, especially related to the supervision of higher risk credit institutions, limits the effective implementation of these strategies.

The Austrian financial intelligence unit (A-FIU) functions well as an investigation unit for predicate offences and associated money laundering but not as a financial intelligence unit. The A-FIU conducts only very basic operational analysis and does not conduct any strategic analysis to support the operational needs of competent authorities. The available IT tools do not enable A-FIU to cross-match suspicious transaction reports or conduct data-mining to find trends and patterns across them. The A-FIU also does not conduct analysis of terrorist financing-related suspicious transactions.

Austria demonstrates many characteristics of an effective system for international co-operation related to ML and associated predicate offences. Austria’s money laundering offence is generally comprehensive and in line with relevant international instruments. Austria also has a generally comprehensive framework for police powers and provisional and confiscation measures. Austria provides assistance to countries who request it, and the Austrian authorities regularly ask their foreign counterparts for information and evidence.

This report was adopted by the FATF at its Plenary meeting in June 2016.   

Mutual Evaluation Report Austria - 2016 - Executive Summary

 

More information: 

The FATF Recommendations

Methodology 2013

 

 

Technical Compliance

Ratings which reflect the extent to which a country has implemented the technical requirements of the FATF Recommendations.

Austria Mutual Evaluation - 2016

R.1 - Assessing risk & applying risk-based approach
PC
R.2 - National cooperation and coordination
PC
R.3 - Money laundering offence
LC
R.4 - Confiscation and provisional measures
C
R.5 - Terrorist financing offence
C
R.6 - Targeted financial sanctions related to terrorism & terrorist financing
PC
R.7 - Targeted financial sanctions related to proliferation
PC
R.8 - Non-profit organisations
PC
R.9 - Financial institution secrecy laws
LC
R.10 - Customer due diligence
LC
R.11 - Record keeping
C
R.12 - Politically exposed persons
PC
R.13 - Correspondent banking
LC
R.14 - Money or value transfer services
C
R.15 - New technologies
PC
R.16 - Wire transfers
PC
R.17 - Reliance on third parties
LC
R.18 - Internal controls and foreign branches and subsidiaries
PC
R.19 - Higher-risk countries
C
R.20 - Reporting of suspicious transactions
C
R.21 - Tipping-off and confidentiality
C
R.22 - DNFBPs: Customer due diligence
PC
R.23 - DNFBPs: Other measures
LC
R.24 - Transparency and beneficial ownership of legal persons
PC
R.25 - Transparency and beneficial ownership of legal arrangements
PC
R.26 - Regulation and supervision of financial institutions
C
R.27 - Powers of supervisors
C
R.28 - Regulation and supervision of DNFBPs
LC
R.29 - Financial intelligence units
PC
R.30 - Responsibilities of law enforcement and investigative authorities
C
R.31 - Powers of law enforcement and investigative authorities
LC
R.32 - Cash couriers
LC
R.33 - Statistics
PC
R.34 - Guidance and feedback
LC
R.35- Sanctions
C
R.36 - International instruments
LC
R.37 - Mutual legal assistance
LC
R.38 - Mutual legal assistance: freezing and confiscation
LC
R.39 - Extradition
C
R.40 - Other forms of international cooperation
LC

C = compliant   |   LC = largely compliant     |   PC = partially compliant   |   NC = non-compliant

Effectiveness

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

Austria Mutual Evaluation - 2016

IO1
ME
IO2
SE
IO3
ME
IO4
ME
IO5
ME
IO6
LE
IO7
LE
IO8
ME
IO9
SE
IO10
ME
IO11
SE

HE = high level of effectiveness   |   SE = substantial level of effectiveness    |   ME = moderate level of effectiveness   |   LE = low level of effectiveness