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 significant strides in combating corruption, being a member of various international anti-corruption frameworks and implementing a national anti-corruption strategy that emphasizes transparency and awareness. Despite ranking 20th in Transparency International's Corruption Perceptions Index, Austria has faced challenges, including high-profile corruption scandals involving political figures, which have eroded public trust. While bribery is criminalized and anti-corruption laws are generally enforced, investigations can be slow, and there are ongoing calls for reforms to enhance the independence of the prosecution service and improve lobbying regulations.

Austria has a well-developed market economy characterized by a significant reliance on exports, which account for over 50% of its GDP, with Germany being its largest trading partner. Despite a strong post-COVID recovery, the economy faced a recession in 2023, marked by a -0.8% growth rate due to manufacturing slowdowns and high inflation, which was forecasted to remain above the Eurozone average. The country boasts a high standard of living, advanced infrastructure, and a large service sector, although challenges such as high labor costs and a shortage of skilled workers persist.

Austria has a favorable investment climate characterized by political stability, high-quality infrastructure, and a welcoming attitude towards foreign direct investment, particularly in technology and R&D sectors. However, challenges such as high labor costs, a complex regulatory environment, and elevated energy prices may impact competitiveness. The country has seen a significant increase in investment screenings, particularly for U.S. investments, reflecting a cautious approach to foreign acquisitions in sensitive sectors.