The Austria Financial Market Authority has released a new short explainer video outlining why banks, insurers and other financial institutions must be able to understand customers’ financial circumstances and verify the plausibility of the origin of funds, with unusually high or unexpected incoming payments flagged as potential money-laundering indicators. The video explains that institutions may request supporting documentation, particularly for unusually large transactions or when establishing a new business relationship, citing examples such as payslips, purchase contracts or insurance policies. Where required information on source of funds is not provided, institutions may be obliged to refuse payments, terminate business relationships, or file a report with the Federal Criminal Police Office, as part of safeguards against misuse of the financial system for criminal activity including fraud, drug or human trafficking, and terrorist financing.
Austria Financial Market Authority 2026-02-06
Austria Financial Market Authority publishes explainer on source-of-funds checks and consequences for unexplained transactions
The Austria Financial Market Authority released a video explaining the need for banks and insurers to verify customers' financial circumstances and fund origins, flagging unusual payments as potential money-laundering indicators. Institutions may request documentation for large transactions and, if information is lacking, may refuse payments, terminate relationships, or report to the Federal Criminal Police Office to prevent financial system misuse.