An important priority of the international community is to prevent the use of the financial system for money laundering and terrorism financing.
Rules and policies have been established to combat these activities.
Money Laundering
"Money-laundering is a processing of proceeds of crime where criminals try to disguise their illegal origin. Once such process is successfully carried out (the proceeds are "laundered"), criminals can use these monies legitimately without revealing their original source".
Financial Intelligence Unit of National Instant Criminal Background Check System, London
Money laundering is defined as a corpus delicti in section 165 of the Austrian Penal Code. This legal provision covers custody, investment, administration, conversion and use of proceeds of crime as well as disguising of their illegal origin.
Financing of Terrorism
In the aftermath of the attacks of 11 September 2001, the international community has stepped up efforts to combat the financing of terrorism.
Terrorist financing is defined by section 278d of the Penal Code as the deliberate provision of funds with the intention that the money be used for terrorist acts.
Unlike money laundering, terrorism can be funded from legitimate sources.
To prevent money laundering and financing of terrorism, the Austrian Banking Act obliges banks and other financial institutions to meet due diligence and specific notification requirements. Its aim is for the financial sector to undertake banking transactions only with identified customers (the "know your customer" principle).
Under the law, financial institutions must identify their customers before starting a business relationship. The relevant provisions are set out in sections 40 and following of the Banking Act.
Implementation by OeKB
OeKB’s activities were screened in order to identify the categories of operations potentially affected by anti–money laundering (AML) regulations.
Detailed procedures regarding these transactions are laid down in OeKB's relevant specific internal rules. These instructions are reviewed by our internal auditors for conformity with Austrian Law and the corresponding EU rules. Compliance with the instructions is monitored on an ongoing basis. Changes in legal requirements are also permanently monitored and the internal rules adjusted accordingly where necessary. Moreover, even those OeKB employees not exposed to activities potentially relevant to anti-money laundering are made aware of the AML regulations.
OeKB works directly with the anti-money laundering coordination centre of the Austrian banking association.
All OeKB managers implement the regulations both in personnel and technical terms. This too is subject to periodic auditing. These managers are informed and advised by OeKB's anti-money laundering officers.
OeKB has two designated anti-money laundering officers (Christine Dangl and Norbert Leitgeb). They are to be informed of any suspicious transactions under AML regulations.