Money Laundering in Austria: Allegations, Penalties and Defence
Attorney, expert in criminal law & civil law, owner of the IBESICH law firm
Legal Notice/Disclaimer: The following information is intended for general guidance only and does not replace individual legal advice. For advice tailored to your specific situation, please consult a lawyer or another qualified legal professional.
A money laundering allegation can affect individuals and companies alike, for example after an international transfer, a property transaction or the forwarding of funds belonging to another person. An unusual payment alone is not decisive. A conviction requires proof of the elements of money laundering under Austrian law.
This article explains which conduct is covered by section 165 of the Austrian Criminal Code, how proceedings may unfold and what matters for the defence. If you have already received a summons or can no longer access your account, the first points to clarify are your procedural rights and the legal basis for the measure.
- Money laundering is a separate criminal offence. Fraud and money laundering allegations have different legal requirements.
- A large transfer, a bank enquiry or a suspicious transaction report does not by itself prove a criminal offence.
- The basic penalty range is six months to five years’ imprisonment. In aggravated cases, the range is one to ten years.
- Defendants have the right to remain silent and to consult defence counsel.
Table of contents
What is money laundering under Austrian law?
The offence of money laundering under section 165 of the Austrian Criminal Code
Money laundering concerns, in particular, dealing with assets derived from criminal activity and concealing their origin. Austrian law uses the term “Geldwäscherei” and distinguishes between several forms of the offence.
Under section 165(1) of the Austrian Criminal Code, transferring or converting such assets may be punishable if this is done to conceal their unlawful origin or to protect another participant in the predicate offence from legal consequences. Concealing or disguising the true origin, location or movement of the assets is also covered.
Subsection 2 covers, among other things, acquiring, possessing or using assets derived from another person’s criminal activity where the person knows of that origin when obtaining them. This form of the offence does not require an additional elaborate concealment arrangement.
A further provision concerns assets under the control of a criminal organisation or terrorist association. Separate requirements apply here. It is therefore always necessary to identify which form of section 165 of the Austrian Criminal Code is specifically alleged.
Why does the underlying criminal offence matter?
For source-based money laundering, the assets must originate from criminal activity covered by statute. This is commonly referred to as the predicate offence.
Section 165(5) of the Austrian Criminal Code generally covers offences carrying a statutory maximum penalty of more than one year’s imprisonment, as well as certain specifically listed offences. These include the cited offences under sections 27 and 30 of the Austrian Narcotic Substances Act. Not every breach of law therefore automatically qualifies as a predicate offence.
A final conviction for the predicate offence is not strictly required. This does not mean, however, that a criminal origin may be assumed without a sufficient factual basis. Substitute assets may also be covered, for example an asset purchased with proceeds of crime.
What role do knowledge and intent play?
Personal knowledge and intent are central issues for the defence. They must correspond to the particular form of the offence alleged.
Section 165(2) requires knowledge of the criminal origin at the time the assets are obtained. Under subsection 1, the intentional conduct described there must be examined. A general assertion that “you should have noticed” does not replace that assessment.
Conversely, saying “I knew nothing about it” does not end the proceedings. Messages, payment instructions, business records and actual conduct may support conclusions about what a person knew or accepted as a possibility.
Distinguishing money laundering from fraud and other property offences
In simplified terms, fraud concerns financial loss caused by deception. Money laundering instead concerns particular dealings with the assets obtained or the concealment of those assets.
Both allegations may arise in the same proceedings, but each must be established separately. A person involved in a predicate offence may also commit money laundering under subsection 1 if its requirements are met. Subsection 2, by contrast, expressly concerns the criminal activity of another person.
Money laundering allegation: what should affected persons do now?
Responding to a summons or contact from investigating authorities
First clarify whether you are being contacted as a defendant, a witness or in another capacity. Your rights and obligations depend on your procedural role.
Keep the summons, including the service information, and note the reference number, authority and appointment date. An Austrian summons should not simply be disregarded. The right to remain silent on the substance of the allegation is separate from the question of whether you must attend the appointment. The official information on compulsory appearance following failure to comply with a summons also explains this distinction.
The right to remain silent and legal advice
As a defendant, you may comment on the allegation or decline to give evidence. You also have the right to legal assistance and to have defence counsel present during questioning. These rights are set out in section 49 of the Austrian Code of Criminal Procedure.
Whether and when a statement is advisable depends on the known allegation and the available evidence. With numerous transactions, spontaneous explanations from memory may be incomplete or misleading. A structured review helps distinguish actual knowledge from assumptions.
Preserving documents concerning the source of assets
Existing documents may help place a payment in its chronological and commercial context. They should be preserved without alteration. Missing records are not an invitation to create contracts, invoices or other evidence retrospectively.
| Documents | What they may help establish |
|---|---|
| Bank statements and payment confirmations | Incoming and outgoing payments, amount, date and accounts involved |
| Purchase, loan or gift documents | The stated legal basis for a payment and the persons involved |
| Invoices and evidence of services | Whether a commercial transaction actually took place |
| Emails and message histories | Instructions, agreements and the state of knowledge at the relevant time |
| Exchange exports and transaction identifiers | The acquisition, sale and movement of cryptoassets |
This overview is intended to prepare for a legal assessment. A single contract does not establish the complete origin of a sum of money. Where a specific criminal allegation has been made, the documents to be submitted and the authority or institution to which they should be provided should be coordinated with the defence.
In which situations can suspicions of money laundering arise?
Large transfers, cash transactions and international payments
Unusual movements of money may prompt enquiries, particularly if they do not fit the known commercial background. As part of anti-money laundering controls, banks must be able to understand their customers and payment flows. The Austrian Financial Market Authority explains the purpose and basis of these checks.
A large amount or a foreign account does not automatically make a payment unlawful. The source, commercial purpose and personal involvement must be considered separately.
Fictional example: payment from an inheritance. A person receives a large amount from an estate abroad. The bank requests additional documents. Records relating to the inheritance and the payment route may explain the background. The enquiry alone does not mean that the recipient is the subject of a criminal investigation.
Property purchases and investments in Austria
Investments may involve several persons, companies or sources of finance. The origin of the funds, the actual parties involved and the purpose of individual payments may all be relevant to the assessment.
A purchase agreement explains what money is used for. It does not necessarily explain where the money originally came from. If an allegation is made, the financing chain must therefore be examined without treating complexity alone as evidence of criminal conduct.
Cryptocurrencies and digital assets
Cryptoassets are not excluded from the money laundering offence. Section 165(6) of the Austrian Criminal Code expressly identifies units of virtual currencies as possible assets.
Fictional example: withdrawal following a cryptoasset sale. An investor sells previously acquired cryptoassets and transfers the proceeds to a bank account. The original deposits, trading data and transaction identifiers may be relevant to the source of funds. A withdrawal from an exchange account explains the final payment step, but may not explain the earlier acquisition.
An investigation must also distinguish between the movements visible on a blockchain and the actual ownership of the wallets involved. The use of cryptoassets alone does not prove guilt.
Forwarding another person’s funds through one’s own account
A person who makes an account available and forwards incoming funds may become involved in a money laundering investigation. Such persons are often referred to as financial agents or “money mules”. The Austrian Money Laundering Report 2024 describes the significant role of online fraud in suspicious payment flows.
Fictional example: an alleged side job. A person is instructed by a purported employer to receive payments and forward them in return for a commission. It later emerges that the funds originated from fraud. The messages, promised duties, payment sequence and the person’s knowledge at the time are among the relevant factors in the criminal-law assessment. Holding the account alone does not establish every element of money laundering.
How does a money laundering investigation proceed?
From a suspicious transaction report to a criminal investigation
Proceedings may originate in a suspicious transaction report, a criminal complaint or information obtained during other investigations. For entities subject to the Austrian Financial Markets Anti-Money Laundering Act, section 16 of that Act governs when a report must be submitted to the Financial Intelligence Unit.
The Financial Intelligence Unit established within the Austrian Federal Criminal Police Office analyses the relevant information. A suspicious transaction report is not a finding of guilt. Whether criminal investigations into a particular person are required depends on the specific grounds for suspicion.
Reviewing account activity and payment flows
An investigation examines the origin, transfer and use of the assets concerned. Bank records, contracts, accounting data and communications may be analysed where the legal requirements are met.
A clear chronology assists the defence: what amount was received and when, who gave which instruction and what information was available at that time? Where numerous payments are involved, transactions assumed to be connected must be examined to determine whether they actually share the same background.
Questioning, searches and seizure
Depending on the grounds for suspicion, questioning and coercive measures may follow. A search of premises or seizure requires its own legal basis. It is not an automatic consequence of every suspicious transaction report.
During a search, any orders and receipts provided should be retained for the defence. Objections to the scope or conduct of the search should be documented in legal terms and raised through the appropriate remedy. Physical resistance or alteration of evidence may make the situation worse.
Special criminal procedure rules apply to smartphones, computers and digital data, particularly section 115f of the Austrian Code of Criminal Procedure. The lawfulness of analysing data must therefore be examined separately from whether a device could lawfully be taken.
Cross-border investigations
Foreign accounts or parties may require cooperation between several countries. Obtaining and translating documents may make the proceedings more complex.
A predicate offence committed abroad may also be relevant under the conditions in section 165(5) of the Austrian Criminal Code. Austrian jurisdiction and the statutory requirements for an offence committed abroad must be examined separately. Neither an international element nor foreign nationality replaces proof of criminal conduct.
What penalties and other consequences can money laundering carry?
Penalty ranges and aggravated cases
The applicable penalty depends on the form of section 165 of the Austrian Criminal Code that has been committed. The circumstances of the individual case determine the specific sentence.
| Statutory classification | Applicable penalty range |
|---|---|
| Money laundering under section 165(1) to (3) of the Austrian Criminal Code | Six months to five years’ imprisonment |
| Offence involving an asset worth more than EUR 50,000 | One to ten years’ imprisonment |
| Offence committed as a member of a criminal association formed to engage in continued money laundering | One to ten years’ imprisonment |
The threshold of EUR 50,000 is not an amount below which money laundering is permitted. It triggers a higher penalty range. Where several transactions are involved, the legal attribution of the assets must be examined separately. The table does not indicate a particular sentence or whether it may be suspended. The legal basis is section 165(1) to (4) of the Austrian Criminal Code.
Asset-related consequences and confiscation
Asset-related orders may be imposed in addition to a sentence. Confiscation under section 20 of the Austrian Criminal Code concerns assets obtained through or for a criminal offence and may also cover substitute assets or a corresponding sum of money.
A money laundering allegation does not automatically result in the loss of all assets. The asset concerned, the actual recipient and possible grounds for exclusion under section 20a of the Austrian Criminal Code must be examined in particular. Provisional preservation during the investigation must be distinguished from a final confiscation order.
Guidance from the Austrian Supreme Court: In confiscation matters, legal principle RS0129964 requires attribution to the actual recipient. Where several persons obtained assets, each person may not automatically be held liable for the entire amount. The individual attribution of the assets is therefore also important for the defence.
Possible consequences for companies and professional activities
Regardless of the eventual outcome of the proceedings, restricted accounts may make ongoing payments more difficult. Enquiries from business partners or financial service providers may also create an administrative burden.
Whether additional professional, trade-law or regulatory consequences arise depends on the activity and the applicable provisions. A criminal investigation is not the same as a final conviction.
What should you do if accounts or assets are frozen or secured?
The difference between bank measures and measures taken by authorities
The legal cause of the restriction must first be established. A source-of-funds review requested by a bank, an order by the Financial Intelligence Unit and a judicial seizure are different procedures.
| Situation | Important first point to examine |
|---|---|
| The bank requests documents or does not execute a payment | Which specific evidence is missing and what legal or contractual basis is the bank relying on? |
| The Financial Intelligence Unit orders a restriction | What does the order under section 17 of the Austrian Financial Markets Anti-Money Laundering Act cover, and what information about legal remedies was provided? |
| Assets are secured in criminal proceedings | What preservation purpose, amount and suspected offence are stated? |
| The court orders a seizure | What requirements and legal remedies arise under the Austrian Code of Criminal Procedure? |
Section 17 of the Austrian Financial Markets Anti-Money Laundering Act governs the non-execution of certain transactions and orders by the Financial Intelligence Unit. Section 115 of the Austrian Code of Criminal Procedure is particularly relevant to seizure in criminal proceedings.
Reviewing the legal requirements
The defence examines why these particular assets were affected and whether the stated purpose supports the measure. Its scope, the attribution to individual persons and its continuing necessity are also relevant.
Fictional example: restricted business account. A company account receives ongoing customer payments. A particular incoming payment is linked to a possible criminal offence. The review must establish which assets and what preservation amount are covered by the measure. The commercial burden caused by outstanding wages or invoices should be documented, but does not by itself create an automatic right to release.
Options for challenging the measures
The available steps depend on the authority or body acting and the legal basis. A court decision may be challenged by an appeal. An objection under section 106 of the Austrian Code of Criminal Procedure may be available for certain infringements of rights during an investigation.
For an order issued by the Financial Intelligence Unit under section 17(4) of the Austrian Financial Markets Anti-Money Laundering Act, the statute instead provides for an appeal to the competent administrative court. A mere enquiry to the bank does not replace these legal remedies.
Under section 115(6) of the Austrian Code of Criminal Procedure, a seizure must be lifted if its requirements are not or are no longer met, or if the sum of money specified by law is deposited. Whether the measure can be lifted, narrowed or otherwise resolved must be assessed on its particular facts. Time limits for remedies should be clarified immediately after service.
What can a defence against money laundering allegations involve?
Access to the case file and review of the evidence
A sound defence strategy requires knowledge of the actual allegation. Access to the case file reveals which payments, statements and other evidence the investigating authorities rely on.
The right to access the case file is governed by section 51 of the Austrian Code of Criminal Procedure. Restrictions permitted by law are possible. It is therefore also necessary to determine whether documents are missing and why they are temporarily inaccessible.
Clearly documenting the origin and payment routes of the assets
Exculpatory records should explain what actually happened. It is useful to link each transaction to its commercial purpose, the person involved and the available supporting document.
This does not mean placing a general burden on the defendant to prove innocence. Criminal liability must be established in the proceedings. Clear documentation may nevertheless help rebut an incorrect assumption about the source or onward transfer of an amount.
Examining the alleged connection with a predicate offence
The defence examines which criminal activity is alleged and how the asset concerned is said to be connected to it. A business relationship that appears suspicious in general terms does not answer these questions.
It is also necessary to determine whether the alleged offence falls within section 165(5) of the Austrian Criminal Code and whether the assets concerned originate from it. Special requirements for offences committed abroad apply to foreign transactions. The organisation-based form in subsection 3 must instead be assessed under its own elements.
Examining knowledge, intent and the defendant’s personal role
The account holder, payment recipient, managing director and person who actually issued the instruction are not necessarily the same person. It is therefore necessary to examine what each defendant personally did and knew at the relevant time.
Access rights, internal approvals, messages and the sequence of events may be decisive. General job titles do not replace an individual assessment.
In suitable cases, effective remorse under section 165a of the Austrian Criminal Code should also be examined at an early stage. The provision requires, among other things, voluntary action and the timely securing of substantial assets. Repayment or a confession alone does not automatically result in exemption from punishment. Because the time requirements are strict, legal advice should be obtained without delay. The legal basis is section 165a of the Austrian Criminal Code.
Money laundering allegations against companies and responsible individuals
Personal responsibility of management and employees
A management position does not automatically make a person criminally liable for money laundering. The person’s own conduct or participation and the required mental elements must be examined.
Conversely, an internal division of responsibilities does not necessarily remove responsibility. A person who orders or approves payments must be assessed according to their actual role. Diverging interests between the company and individual defendants may require separate legal representation.
Requirements for corporate criminal liability
In addition to natural persons, a company may be held liable under the Austrian Corporate Criminal Liability Act. The starting point is that the offence was committed for its benefit or that duties incumbent on the organisation were breached.
For decision-makers, the statute requires unlawful and culpable conduct in that capacity. Additional requirements apply to employee offences, particularly that failures of care by decision-makers enabled or substantially facilitated the offence. For intentional offences, the employee must also have acted intentionally. These distinctions are governed by section 3 of the Austrian Corporate Criminal Liability Act.
If liability is established, a corporate fine may be imposed under section 4 of the Austrian Corporate Criminal Liability Act. Corporate liability and the personal criminal liability of individual participants may exist side by side.
The importance of internal processes and documentation
Approval processes, responsibilities and the checks actually carried out may be significant to the assessment. What matters is how the processes operated at the relevant time.
Classification as white-collar criminal law is particularly relevant to corporate investigations.
The existence of a compliance manual does not automatically prove that its requirements were implemented. Equally, a single gap in the records does not establish every requirement for corporate liability. Internal investigations should preserve evidence and respect the rights of the persons affected.
How can a lawyer assist with a money laundering allegation?
Advice before the first statement
A criminal defence lawyer clarifies your procedural role, the known allegation and upcoming appointments. On that basis, it is possible to decide whether initially to remain silent, request access to the case file or prepare a statement supported by evidence.
For an initial consultation, the summons, official correspondence and a short chronology are useful. Where documents are in another language or there are communication difficulties, the necessary translation or interpreting support should be clarified at an early stage.
Representation during the investigation and in court
Legal representation includes reviewing evidence, preparing for questioning and, where appropriate, filing evidentiary applications or legal remedies. The focus is on the legal and factual assessment of the particular circumstances.
Depending on the case, the objective may be to have the proceedings discontinued, to rebut individual allegations or to achieve an appropriate assessment in court. No particular outcome can be promised in advance.
Assistance with measures affecting assets
Where accounts are restricted or other assets secured, the lawyer examines the legal basis and scope of the measure. The defence against the criminal allegation and the legal protection of assets must be coordinated.
Have you received a summons concerning money laundering, or are you affected by an asset preservation measure? For an initial consultation, you can assemble the available correspondence and a record of the payments to date. The consultation can then clarify which legal steps are appropriate in your situation.
Frequently Asked Questions About Money Laundering Defence
Is a large bank transfer a criminal offence in itself?
No. The amount of a transfer alone does not satisfy the elements of money laundering. The other statutory requirements are decisive, particularly the assets concerned, the specific conduct and the required intent or knowledge. Banks may nevertheless request evidence of the source of funds.
Can forwarding someone else’s money lead to a money laundering allegation?
Yes. A person who receives and forwards funds belonging to someone else may become the subject of an investigation, for example if the money originates from fraud. A conviction requires proof of the elements of the specific form of money laundering alleged. Holding the account and forwarding the funds do not by themselves answer the question of knowledge and intent.
Must the predicate offence already have been established by a judgment?
No. Section 165(5) of the Austrian Criminal Code does not require a prior conviction for the predicate offence. For source-based money laundering, however, the assets must still originate from criminal activity covered by the statute. The absence of a conviction neither makes this connection irrelevant nor proves it automatically.
Which documents help establish the source of funds?
Bank statements, contracts, inheritance documents, invoices, evidence of services and transaction data may be useful. The evidence required depends on the actual transaction. Where a criminal allegation has been made, any disclosure should be coordinated with the defence. Existing documents should be preserved without alteration.
What applies if the money comes from abroad?
The fact that funds originate abroad does not automatically make a payment unlawful. A foreign predicate offence may, however, be relevant under the conditions set out in section 165(5) of the Austrian Criminal Code. The actual origin, the applicable legal requirements and the defendant’s personal involvement must be examined.
When should I consult a criminal defence lawyer?
In the event of a specific money laundering allegation, preferably before making a substantive statement. This is particularly important following a summons, a search of premises or a measure affecting accounts or assets. An early review helps protect procedural rights and deadlines and allows relevant documents to be organised.
Sources
Money laundering and asset-related consequences
- Section 165 Austrian Criminal Code – Money laundering
- Section 165a Austrian Criminal Code – Effective remorse
- Section 20 Austrian Criminal Code – Confiscation
- Section 20a Austrian Criminal Code – Exclusion of confiscation
- Austrian Supreme Court, RS0129964 – attribution to the recipient in confiscation proceedings
Defendants’ rights and preservation measures
- Section 49 Austrian Code of Criminal Procedure – Rights of the defendant
- Section 51 Austrian Code of Criminal Procedure – Access to the case file
- Section 87 Austrian Code of Criminal Procedure – Appeal
- Section 106 Austrian Code of Criminal Procedure – Objection based on infringement of rights
- Section 115 Austrian Code of Criminal Procedure – Seizure
- Section 115f Austrian Code of Criminal Procedure – Seizure of data carriers and data
- Section 119 Austrian Code of Criminal Procedure – Search of places, objects and persons
- Section 120 Austrian Code of Criminal Procedure – Ordering and conducting a search
- Austria’s official information portal – Compulsory appearance and coercive detention
Prevention of money laundering and corporate criminal liability
- Section 16 Austrian Financial Markets Anti-Money Laundering Act – Reports to the Financial Intelligence Unit
- Section 17 Austrian Financial Markets Anti-Money Laundering Act – Non-execution of transactions
- Section 3 Austrian Corporate Criminal Liability Act – Liability
- Section 4 Austrian Corporate Criminal Liability Act – Corporate fine
- Austrian Financial Market Authority – Prevention of money laundering and terrorist financing
- Austrian Federal Criminal Police Office – Money Laundering Report 2024
The statutory sources were reviewed in the version applicable on 8 September 2026. This article provides general information on Austrian law and does not replace advice on a specific case. The four examples are fictional and do not represent actual instructions or court decisions.
Find more reviews on our Google Business Profile
Get in Touch
You can reach us by phone, email, or via our contact form.
IBESICH
Josefstädter Straße 11/1/16
1080 Wien
MO-FR: 9 am to 6 pm
You are currently viewing a placeholder content from Google Maps. To access the actual content, click the button below. Please note that doing so will share data with third-party providers.
More Information
You need to load content from reCAPTCHA to submit the form. Please note that doing so will share data with third-party providers.
More InformationNews from the firm and legal updates in Austria.
