Federal Council decides on the legislative package against money laundering and sanction bypass

Federal Council decides on the legislative package against money laundering and sanction bypass

Laimgrubengasse 10, 1060 Wien, Österreich - On December 5, 2024, the Federal Council decided to combat money laundering and to improve the implementation of international law sanctions. ÖVP, SPÖ, NEOS and Greens voted for a comprehensive law package that implements the recommendations of the Financial Action Task Force (FATF) and reacts to new EU specifications. In particular, the bypass of sanctions is to be made more difficult and the monitoring of money flows is to be optimized, such as ots.at .

Core of the reform is a new sanctions law that will make the financial market supervision (FMA) responsible for surveillance from 2026. This means that the circle of supervised institutions is significantly expanded, including insurance companies, securities and crypto service providers. The legal foundations for the list of international law sanctions are also specified. This is intended to ensure that Austria can effectively adhere to the international standards to combat money laundering and financing terrorism in order to prevent possible economic damage through a bad evaluation result of the FATF. Finance Minister Gunter Mayr emphasized the urgency of the measures and the need for a rapid implementation, since Austria is currently subjected to a FATF examination.

political controversy and formal participation

The reform not only met with approval. Critics like Isabella Theuermann (FPÖ/K) warn that the package could have negative effects on the business location. She complained that there was not sufficient for suggestions from the assessment process. However, Christoph Stillebacher (ÖVP/T) defended the reform as an important instrument to combat money laundering and ensure international standards. Stefan Schennach (SPÖ/W) added that the legislation is crucial to proceed against "dirty money" and to combat organized crime, while Maria Huber (Greens/St) spoke of a big step to close loopholes to sanction bypass

Overall, the draft law shows a clear direction to strict measures against money laundering and the financing of terrorism, which are reflected in a stricter regulatory environment. This reform is now closely accompanied by the political level in order to promote the closer cooperation between the Federal Council and the National Council, which is confirmed by the nomination of members for the joint committee, such as bundesrat.de Reported .