Announcement: BVwG imposes sanction against the managing director of a security deposit box management service for a breach against Article 23 para. 1 no. 3 FM-GwG | FMA Österreich

Announcement: BVwG imposes sanction against the managing director of a security deposit box management service for a breach against Article 23 para. 1 no. 3 FM-GwG

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The Austrian Financial Market Authority (FMA) hereby announces that the Federal Administrative Court (BVwG; Bundesverwaltungsgericht) has imposed a fine of EUR 3,500.00 in a decision issued on 02.08.2017 for a breach of the provisions on the prevention of money laundering and terrorist financing (Article 23 para. 1 no. 3 of the Financial Markets Anti-Money Laundering Act (FM-GwG; Finanzmarkt-Geldwäschegesetz) against the managing director of a security deposit box management service. The Federal Administrative Court (BVwG) shared the FMA’s legal view, in which the provision of safety deposit box management services in the case in hand constitutes the entity’s principal activity and that the management of safety deposit box pursuant to Article 1 para. 2 no. 6 of the Banking Act (BWG; Bankwesengesetz) does not necessarily require compulsory dual control, and therefore the provisions of Article 23 para. 1 no. 3 FM-GwG are required to be fulfilled. The entity should have implemented appropriate and suitable processes in order to ensure the identification of the respective parties hiring the safety deposit box. The decision is final; a final right of appeal was granted.

Update: 21.09.2017

The complainant petitioned for a final right of appeal against the ruling by the Federal Administrative Court of 02.08.2017, and applied for the granting of suspensory effect for the final right of appeal pursuant to Article 30 para. 2 of the Administrative Court Act of 1985 (VwGG; Verwaltungsgerichtshofgesetz 1985).

Update: 05.12.2017

The Federal Administrative Court rejected the petition for a final right of appeal.