Austria Country Summary

FATF Status

Austria is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest Follow-up Report & Technical Compliance Re-Rating was completed in November 2018. According to that Evaluation, Austria was deemed Compliant for 18 and Largely Compliant for 18 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 3 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Austria has made strides in combating corruption, ranking 20th in Transparency International’s Corruption Perceptions Index, but has faced challenges due to high-profile scandals involving political figures. The country has implemented a national anti-corruption strategy and established legal frameworks to address bribery and conflicts of interest, yet public trust in the political system has been shaken. Despite these issues, corruption does not significantly hinder business operations, and U.S. companies have not reported corruption as a barrier to foreign direct investment.

Austria has a well-developed market economy characterized by a strong export sector, with over 50% of its GDP coming from exports, particularly to EU countries like Germany. Despite its political stability and high standard of living, the economy faced a recession in 2023, marked by a -0.8% growth rate due to declining manufacturing and exports, high energy prices, and inflation rates exceeding the Eurozone average.

Austria has a favorable investment climate characterized by political stability, high-quality infrastructure, and a strong emphasis on technology and R&D. The government actively welcomes foreign direct investment, particularly in sectors that create jobs and support advanced technologies, although challenges such as high labor costs, inflation, and a complex regulatory environment persist. While there are limited restrictions on foreign investment, the national security law requires government approval for significant ownership stakes in sensitive sectors, which has led to an increase in investment screenings.