Banker's Academy AML Training by Country

Anti Money Laundering (AML) By Country: Austria

Anti Money Laundering (AML) in Austria

Money laundering in Austria is not prevalent; however, like any highly developed financial marketplace, Austria’s financial and non financial institutions are vulnerable to money laundering. The Government of Austria criminalized money laundering in 1993 for all serious crimes and passed additional legislation necessary to construct a strong Anti Money Laundering (AML) system.

Austria passed the Banking Act of 1994 which created customer identification, recordkeeping and staff training obligations for the financial sector. The Act requires identification of all customers when entering into an ongoing business relationship, such as opening a checking account, a passbook savings account, or a securities deposit account. In addition, customer identification is required for all transactions of more than 15,000 Euro for customers without a permanent business relationship with the institution. Banks and other financial institutions are required to keep records on customers and account owners. Bank employees are protected with respect to their cooperation with law enforcement agencies.

The Banking Act includes a due diligence obligation, and individual bankers are held legally responsible if their institutions launder money. There is no requirement for banks to report large currency transactions, unless they are suspicious. However, the Austrian Financial Intelligence Unit (AFIU) provides information to banks to raise awareness of large cash transactions.

Since 2002, the AFIU, the central repository of Suspicious Transaction Reports (STRs), has been a section of the Austrian Interior Ministry’s Bundeskriminalamt (Federal Criminal Intelligence Service).

The Economy of Austria

The Austrian economy benefits from a well-developed market economy and a high standard of living. Its prosperity is closely tied to the success of other European Union (EU) economies, particularly Germany's. The success of the Austrian economy relies greatly on its strong commercial relations, in the banking and insurance sectors, with central, eastern, and southeastern Europe.

The Austrian economy features a large service sector, a sound industrial sector and a small, but highly developed agricultural sector.

The Government of Austria has successfully pursued a comprehensive economic reform program, aimed at streamlining the government and creating a more competitive business environment, further strengthening Austria's attractiveness as an investment location.

Banking in Austria

The Oesterreichische Nationalbank (OeNB) is the Central Bank of Austria and an integral part of both the European System of Central Banks (ESCB) and the Eurosystem. In the public interest, the OeNB contributes to monetary and economic policy decision making in Austria and in the euro area. As the Central Bank of Austria, the OeNB is governed by a number of special provisions outlined in the 1984 Nationalbank Act (NGB).

The main tasks of the OeNB include contributing to the stability of the Eurosystem, safeguarding financial stability in Austria and supplying the general public and the business community in Austria with reliable banking services. In addition, the OeNB manages reserve assets, performs economic analyses, compiles statistical data, is active in international organizations, and is responsible for payment systems oversight.

Currency in Austria

The currency in Austria is the Euro, which serves as the currency of the 15 members of the European Central Bank. The states that have adopted the Euro as currency make up the Eurozone. These countries are: Austria, Belgium, Cyprus, Finland, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovenia and Spain. The Euro is the single currency for more than 320 million Europeans.

The Euro was first phased into the global economy in 1999. In the beginning, participating countries had to combat the use of both Euros and former national currencies. Beginning in 2002, national currencies were withdrawn.

The Euro comes in both banknotes and coins. Banknotes are available in 5, 10, 20, 50, 100, 200 and 500 denominations. Coins are available in 1, 2, 5, 10, 20, 50 cent pieces, and 1 and 2 Euro coins.