The Council of Europe’s Economic Crime and Cooperation Division is supporting Austria in strengthening its framework for anti-money laundering/combatting the financing of terrorism (AML/CFT), in line with EU and international requirements. This effort, upon the Austrian authorities request on the basis of current issues faced and gaps previously identified, focuses in particular on enhancing the system for risk-based AML/CFT supervision by regional and local authorities on private sectors exposed to higher money laundering and terrorism financing risks.

In this regard, the Project is conducting an in-depth review of the existing legislative and administrative framework for the risk-based AML/CFT supervision of selected higher risk sectors of obliged entities under the Trade Act within the remit of regional and local competent authorities in Austrian regions (Länder). This review aims to obtain a precise understanding of the current framework and practices of supervision at regional and local level and provide targeted and actionable recommendations for their improvement.  

On 29 and 30 November 2023, as part of the consultative process towards the review, the Project organised a round of online meetings during two days with representatives from all Austrian regional supervisory authorities and the Federal Ministry of Labour and Economy. These consultations helped collect preliminary and background information to inform the review of the legal framework and practices for the risk-based AML/CFT supervision of selected higher risk non-financial business sectors in each region. 

The meetings offered the Austrian authorities and the Council of Europe’s expert team the opportunity to discuss and exchange views on the legislative and administrative framework for the implementation of the AML/CFT provisions contained in the Trade Act in each region, the practices in place for supervisory activities, the risk distribution associated with the sectors in the scope of the Project, and the mechanisms and current practices of communication and coordination with the concerned private sector entities, with other regional stakeholders, and with the federal level. Participants engaged actively in substantive sessions, sharing information and perspectives from their own regional experience, and jointly reflected on challenges and possible best practices in the field of risk-based AML/CFT supervision.

Following these meetings, the Project used their results to finalise a Technical Paper on preliminary findings and issues for further analysis, and to develop detailed questionnaires for the next data collection phase, in preparation of the comprehensive review of the existing legislative and administrative framework for the practical application of the risk-based AML/CFT supervision of the obliged entities within the scope of the Project. 

This support is being provided within the framework of the Technical Support Instrument (TSI) project on “Regional and local authorities – Enhancing Quality of public administration and cooperation, Prevention of money laundering and terrorist financing”, co-funded by the European Union and the Council of Europe, and implemented by the Council of Europe, in cooperation with the European Commission – DG REFORM.