The Austrian Financial Market Authority (FMA) takes over responsibility with effect from 1 January 2026 for the monitoring and enforcement of financial sanctions in the Austrian financial sector from the Oesterreichische Nationalbank (OeNB). By doing so, the final step of the reform passed in 2024 has been concluded. The FMA becomes the central authority for monitoring of observance of financial sanctions and strengthens its role as the comprehensive supervisory instance for financial market integrity.
“As a small, open economy, Austria is exposed due to its geographical location as well as its role as the gateway to Central and Eastern Europe,” FMA Executive Director Mariana Kühnel explained. “We cannot afford to show any signs of weakness regarding the integrity of the financial centre.”
“Financial integrity is a cornerstone for economic freedom and prosperity,” added FMA Executive Director Helmut Ettl. “An orderly financial centre is an infrastructure that is based on trust, and which protects citizens, companies and the state from abuse.”
All financial market participants – banks, payment institutions, crypto-asset service providers and insurance undertakings are now covered by the Sanctions Act’s (SanktG; Sanktionengesetz) scope of application and therefore fall under the FMA’s supervisory competence. They are required to establish strategies, controls and procedures for mitigating the risk of non-observance and circumvention of sanctions, and sanctions notifications are to be addressed to the FMA in the future.
Integration of the Prevention of Money Laundering and Sanctions
In the future, the FMA will combine the supervision of Prevention of Money Laundering and Terrorist Financing (AML/CFT) and financial sanctions, and will thereby be in an even better position to contribute towards ensuring Austrian is a clean financial centre.
“This integrated approach has made the FMA into a “One-Stop-Shop” for the prevention of money laundering and terrorist financing and the enforcement of financial sanctions,” remarked Ettl. Financial sanctions are being integrated fully into the FMA’s existing supervisory tool kit – from procedures for entering the market and Fit & Proper tests, via on-site inspections and analyses through to procedure to restore legal compliance and administrative penalties. “Existing systems and processes have been adapted and developed further for this purpose, to ensure that they are implemented in a way that is efficient and practically relevant.”
In addition to classical supervision activities, the FMA will also conduct procedures for releasing frozen assets (which currently stand at around €2.5 billion in Austria) as well as conducting administrative penal proceedings.
Synergy effects and added value for the market
“Combining AML/CFT inspections and sanctions inspections creates significant synergies and increases supervisory efficiency and effectiveness”, added Kühnel “It allows a more comprehensive view of the risks and systemic vulnerabilities that exist and reduces the duplication of inspections and reporting for supervised entities.”
Anomalies in the area of AML/CFT may point out deficits in the area of sanctions – which is particularly relevant in the case of complicated group structures or cross-border transactions. In addition, the bundling of the collection of data, makes supervision more efficient and focused. From 2026, financial market participants only have a single centralised supervisory authority and therefore a single point of contact for both areas – with clear responsibilities, harmonised processes and coordinated inspection cycles.
Preparations and Outlook for 2026
In the past year, the FMA has worked closely with the OeNB to coordinate the transfer of competence, ensured the transfer of knowledge, and has built up its resources and know-how. For example, initial on-site inspections have been conducted on behalf of the OeNB, applications for the releasing of frozen assets processed on behalf of the OeNB, and reporting data analysis. In addition, several preparatory meetings were held with the financial sector that focused on mutual expectations as well as specialist exchange. In addition, the FMA has been able to conduct market analyses using existing AML/CFT data about the risks of circumvention of sanctions and to address vulnerabilities in a targeted manner.
In the year ahead, the FMA plans to conduct around 30 combined on-site inspections and around 20 on-site spot checks in the areas of AML/CFT and financial sanctions. Experiences to date have already shown that combined measures have a significantly larger impact and are more efficient than isolated inspections, as they permit more targeted analysis in greater depth.
Details about reporting and further information may be found on the FMA website at: https://www.fma.gv.at/en/cross-sectoral-topics/financial-sanctions/
Journalists may address further enquiries to:
Boris Gröndahl (Media Spokesperson)
Telephone: +43/(1)249/59-6010
Mobile: +43 676 8824 9995
E-Mail: [email protected]