World ECR | Austria shifts sanctions oversight to finance

The Austrian parliament has approved sweeping legislation to transfer sanctions monitoring from the Austrian National Bank (“OeNB”) to the Financial Markets Authority (“FMA”) and expand supervisory powers, a move that parliamentary letters indicate could help avoid “double-digit… The cost” would be in the range of $1 billion if Austria fails the upcoming FATF review.

The November 20 parliamentary document noted that the program is “extremely important for Austria,” especially given its “overall economic importance and reputation.” The reforms, supported by the ÖVP, SPÖ, NEOS and the Green Party but opposed by the FPÖ, implement FATF recommendations and EU guidelines while extending the regulatory scope to “insurance companies, investment firms and crypto-asset service providers” “.

The letter stated that “beginning in 2026, the new regulations will be extended to all EU financial sanctions,” including “political sanctions against Russia.” The plan provides the legal basis for the Austrian authorities to propose UN and EU sanctions designations and, under certain conditions, impose temporary national sanctions.

The document stresses that the current system, in which the OeNB “employs external auditors to oversee sanctions, has resulted in a conflict of interest” will be corrected. The new framework requires risk management systems to prevent sanctions evasion and requires “transparency for private foundations.”

The opposition party described the legislation as a “last-minute emergency measure”, warning that unresolved data protection issues and “gaps in criminal code provisions” could have a “negative impact on Austria as a place to work and do business.”

The package also implements FATF recommendations on proliferation financing by amending accounting, tax advisory and trade regulations, introducing expanded due diligence obligations and “an obligation on payment service providers to provide information about payers and payees, including for crypto-assets” Transferred Information.”

Austria’s next FATF national review is scheduled for July 2025, with plenary discussions scheduled for February 2026.