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 of the Financial Markets Anti-Money Laundering Act (FM-GwG; Finanzmarkt-Geldwäschegesetz)

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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 5,000.00 in a decision issued on 21.07.2017 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 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: 19.09.2017

A final right of appeal to the Supreme Administrative Court (VwGH) by the complainant against the ruling of the Federal Administrative Court (BVwG) of 21 July 2017.

Update: 19.11.2018

The Supreme Administrative Court (VwGH) has dismissed the final Appeal as being unjustified.