Combating of Terrorist Financing is a core component of international sanctions policy. In particular, various UN Security Council Resolutions (see https://www.un.org/securitycouncil/) oblige Austria to implement specific sanctions measures addressed towards terrorists or terrorist organisations. The UN Security Council has created centralised bases for the international combating of terrorist financing by means of its Resolutions, such as 1373 (2001), 1267 (1999), 1390 (2002), and 2253 (2015). These resolutions were implemented in Austria by means of directly applicable EU Regulations. They consist of the obligation to freeze the assets of terrorist protagonists (freezing orders) as well as to prohibit making funds available (prohibitions).
Relevant Links
Restrictive Measures for Combating Terrorism
UN Security Council Resolution 1373, of 28 September 2001 in relation to terrorists and terrorist organisations in third countries was transposed at EU level by Council Resolution (EC) No. 2580/2001. This Regulation contains, inter alia, freezing orders as well as prohibitions on the provision of funds.
Pursuant to Article 2 (3) of Regulation (EC) No 2580/2001 the list of persons and organisations is published in an Council Implementing Regulation that is reviewed semi-annually, and contains terrorist organisations like Hamas, the military arm of Hezbollah, the DHKP-C, or the PKK.
Listing of terrorists within the EU: following the entry into force of the Sanctions Act 2024 (SanktG) on 11 February 2025, Article 4 para. 1 SanktG 2024 provides the national legal basis for imposing financial sanctions at national level. The Federal Minister of Finance, in consultation with the Federal Minister for European and International Affairs and the Federal Minister of the Interior is authorised to issue decrees or administrative decisions ordering certain measures, provided doing so is required to satisfy United Nations or European Union sanctions measures.
Within the scope of such sanctions regimes, the competent authority may grant derogations from freezing orders or prohibitions on making funds available. Applicants for authorisation of such derogations, for assets frozen that are managed or held by financial market participants as defined in Article 1 para. 4 SanktG 2024 as amended, or that exist in claims against such financial market participants, are to be submitted exclusively to the Austrian Financial Market Authority (FMA) as the competent authority via the Incoming Platform.
In addition to the possibility of authorisations of derogations on a case-by-case basis, specific payments are already legally excluded from prohibition (cf. Article 5 (1) of Regulation (EC) No. 2580/2001). The condition such payments, however is that such amounts are credited to a frozen amount and that that account is also frozen. A separate application is therefore not required in such cases.
Restrictive measures against ISIL/Da’esh and Al-Qaeda
Sanctions against ISIL (Da’esh) and Al-Qaeda are implemented at EU level by Regulation (EC) No 881/2002 as well as Regulation (EU) 2016/1686. These Regulations also define freezing orders and prohibitions.
Under certain conditions, the competent authority may grant exemptions from the freezing order or prohibition within the scope of these sanctions regimes (cf. Article 2a (1) of Regulation (EC) No 881/2002 and Article 5 et seq. of Regulation (EU) 2016/1686). With effect from 01.01.2026, the FMA is responsible for the release of certain frozen funds in accordance with the exceptions contained in the respective sanctions regulations. Applications for releasing funds pursuant to Regulations (EG) No. 881/2002 as well as (EU) 2016/1686 may only be submitted to the FMA as the competent authority via the Incoming Platform.
In addition to the possibility of authorisations of derogations on a case-by-case basis, specific payments to persons under sanctioned (e.g. crediting of interest) already legally excluded from prohibition subject to specific conditions being met (cf. Article 2a (4) of Regulation (EC) No. 881/2002). The condition attached to such payments, however, is that such amounts are credited to a frozen amount and that that account is also frozen. A separate application is not required in such cases.
Reporting requirements for frozen assets (Asset Freeze)
Financial market participants pursuant to Article 1 para. 2 SanktG 2024 as amended are responsible for ensuring compliance with EU sanction measures. They must therefore primarily ensure, that funds are not made available via their institution to any of the persons listed in relevant legal acts, and furthermore are required to freeze all funds that such a person owns, holds or otherwise controls.
In order to be able to monitor financial market participants’ compliance with sanctions, in addition to compulsory ad hoc reports, frozen accounts are required to be reported to the FMA on a quarterly basis. Such reports are made via the Incoming Platform. A guideline about how to fill the template will also be made available on the Incoming Platform.