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Announcement: FMA imposes sanction against Hypo Vorarlberg Bank AG for a breach of due diligence obligations for the prevention of money laundering and terrorist financing in a correspondent banking relationship

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The Austrian Financial Market Authority (FMA) has imposed a fine of EUR 791,000 against Hypo Vorarlberg Bank AG. This is due to breaches against the Financial Markets Anti-Money Laundering Act (FM-GwG; Finanzmarkt-Geldwäsche-Gesetz) in relation to a correspondent banking relationship covering the executive of investments of money held in trust, as well as the execution of payments. Hypo Vorarlberg Bank AG failed to obtain sufficient information and evidence about the origins of funds invested in investment accounts, and also failed to subject payment accounts to continuous risk-based monitoring. The penal order is not final.

Update: 08.10.2024

Hypo Vorarlberg Bank AG has lodged an appeal to the Federal Administrative Court (BVwG; Bundesverwaltungsgericht) against the FMA’s penal order.

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