The Financial Action Task Force published its mutual evaluation of Austria, finding that the country has made clear progress in strengthening its anti-money laundering, counter-terrorist financing and counter-proliferation financing framework, with all but one of the FATF 40 Recommendations rated largely or fully compliant. The review nevertheless identified significant weaknesses in operational effectiveness, particularly in the financial intelligence unit, money laundering investigations and prosecutions, supervision of designated non-financial businesses and professions, and asset recovery. Based on the effectiveness and technical compliance ratings, Austria has been placed in enhanced follow-up. The report highlights strong advances in beneficial ownership transparency, financial sector and virtual asset supervision, and terrorist financing investigations. Austria’s Beneficial Ownership Register was described as a key strength, and the Financial Market Authority’s risk-based supervision was assessed positively. Against that, the review found that risk understanding remains uneven across authorities, mutual legal assistance and asset recovery are not aligned with Austria’s cross-border exposure, supervision of many non-financial sectors is fragmented and under-resourced, and the financial intelligence unit lacks sufficient resources and budgetary and recruitment independence. Restrictive interpretations of the money laundering offence continue to limit stand-alone and third-party cases, the number of money laundering prosecutions remains low, sanctions are not sufficiently dissuasive, and confiscation outcomes are limited. Austria’s terrorist financing framework was assessed as largely effective for the country’s risk profile, while coordination to combat proliferation financing was found effective. Austria has been given a three-year roadmap of key recommended actions, including deepening its understanding of domestic and transnational money laundering and terrorist financing threats, properly resourcing the financial intelligence unit, strengthening non-financial sector supervision, improving international cooperation and asset recovery, and ensuring that authorities can prosecute the full range of money laundering offences more effectively. Austria will report back to the FATF on its progress.

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