Fighting money laundry and terrorism funding

Money laundering and terrorism financing represent a great danger for financial markets. In money laundering, the origin of revenues from illegal activities is disguised; in terrorism financing, assets are collected and made available for carrying out terrorist activities.

In order to fight money laundering and terrorism financing, the Financial Action Task Force (FATF) was established in 1989. The international standard consists of the 40 FATF recommendations concerning money laundering and the 9 FATF Special recommendations concerning terrorism financing. Additional rules are provided by the Second Money Laundering Directive of the EU and by various United Nations Security Council resolutions pertaining to the terrorism financing. As a member of the FATF and the United Nations as well as the EU, Austria actively participates in implementing these standards on a global as well as on a national level.

Money laundering and terrorism financing are criminalized by law in Austria. Additional regulations serve a preventative purpose.

The nature of the financial sector makes it one of the most vulnerable areas; this is why banking, insurance, and securities supervisory laws contain detailed regulations concerning money laundering and terrorism financing. The motto “know your customer" is considered to be one of the best weapons against misuse. This is why every customer in Austria has to be identified when

• entering into a long-term business relationship with a financial institution (e.g. opening a bank account),
• conducting a transaction with a value of at least EUR 15.000, if it is not part of a long-term business relationship,
• making a payment to or withdrawing from a savings account, if the amount in question is at least EUR 15.000,
• in any case, if there is a suspicion of money laundering or terrorism financing.

If there is a suspicion of money laundering or terrorism financing, the Austrian "Geldwäschemeldestelle" (Financial Intelligence Unit) which has been set up in the Central Intelligence Service ("Bundeskriminalamt") has to be notified.

By applying these rules and regulations, Austria complies with the standards of the FATF, the United Nations and the EU.

 

 

• Financial Action Task Force on Money Laundering
• Second Money Laundering Guideline
• UN Conventions against Terrorism Financing
• UN Security Council Resolution No. 1373

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