THEMES A-Z

Financial Sector | Money Laundering and Terrorist Financing |

Asset Freezing

One of the aims to counteract terrorism is to deprive terrorists and terrorist networks of financial support in any form, disabling them to engage in terrorist activity. That is why asset freezing is a core component of the fight against terrorism, a fact acknowledged by FATF’s Special Recommendation III.

United Nations Security Resolution 1267(1999) requires all assets and funds owned, held or controlled by natural and legal persons connected with Osama bin Laden, Al Qaida and the Taliban to be frozen. Additionally, UN Security Resolution 1373(2001) obliges all Member States to freeze assets and funds related to terrorist financing.

Measures to freeze funds or other assets of terrorists, those who finance terrorism and terrorist organizations are mainly implemented in Austria by directly applicable European Council Regulation No. 881/2002 and 2580/2001 (and any following amendments to these regulations). With these regulations, the EU establishes a list of persons and entities whose funds, assets and economic resources must be frozen in all EU Member States. Additionally, the Austrian Central Bank (Oesterreichische Nationalbank – OeNB) issues regulations listing any other identified terrorists. Austrian financial institutions must comply with these provisions and freeze all accounts and transactions in connection with listed persons and entities.