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M) Money Laundering and Financial Crimes
The existence of anonymous passbook savings accounts spurred the Financial Action Task Force (FATF) to threaten Austria with suspension from FATF if the government did not take action to abolish the accounts. The threat of suspension followed FATF’s issuance of a public warning to financial institutions of the risks that are associated with Austrian anonymous passbook savings accounts. In response, the Government enacted legislation that will effectively eliminate anonymous passbook savings accounts by June 2002. No new accounts have been permitted since early November 2000. In response the FATF lifted its warning about the anonymous passbook savings accounts. ... [Read More]
Money Laundering and Financial Crimes
In June 2000, the Government of Austria (GOA) approved legislation, the Banking Act Amendment, that addressed the FATF's concerns. Beginning November 2, 2000, applicants for new passbook accounts must be identified. In addition, if deposits are made to an existing passbook account, the holder must be identified-except for deposit transfers from anonymous securities accounts opened prior to August 1, 1996. After June 30, 2002, if a withdrawal is made from an existing passbook account-and the holder has not previously been identified-the holder must be identified. A June 15, 2000 press release indicates that the FATF will closely monitor Austria's implementation of these measures. The GOA in 1996 abolished anonymous securities accounts. Although new deposits are not allowed, customers can continue to make withdrawals and sales from these accounts without identification until June 2002. ... [Read More]
Money Laundering and Financial Crimes
Despite the availability and anonymity of the Sparbüch accounts, U.S. law enforcement agencies indicate there is no evidence that these accounts are being used to launder drug money. Even though the restrictions on the Sparbüch accounts do not hinder their typical use (such as the use of several Sparbuch accounts to pay different bills or having a separate Sparbuch for each grandchild), they do, in fact, make them less than attractive as a money laundering vehicle. Austria is a party to the 1988 UN Drug Convention and a member of the FATF. In 1996, Austria abolished anonymous securities accounts, in compliance with the FATF Forty recommendations and EU regulations. In 1997, it tightened restrictions on trustee accounts. However, the FATF decided at its February 2000 meeting to suspend Austria's membership as of June 15, 2000, unless the Austrian government, by May 20, 2000, (1) commits to eliminating the system of anonymous passbooks by the end of June 2002 and (2) introduces and suppo ... [Read More]
M) Money Laundering and Financial Crimes
The existence of anonymous numbered passbook savings accounts spurred the Financial Action Task Force (FATF) to threaten Austria with suspension from FATF if Government of Austria (GOA) did not take action to abolish the accounts. The European Commission had lodged a complaint with the European Court of Justice contending that these anonymous passbook savings accounts violated the Commission’s anti-money laundering directive. The FATF lifted its warning about the anonymous passbook savings accounts following the GOA’s enactment of legislation, effective November 2, 2000. Since then, new passbook savings accounts and deposits on existing accounts require customer identification. The deadline for identifying existing anonymous accounts was June 30, 2002; since then, special procedures, i.e., delaying payments and reporting such customers to the police, apply for accounts not yet identified. There are no statistics on how many accounts have not been identified. Banks and other financial i ... [Read More]
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