Arrested Malaysian drug lord suspect Ong Gim Wah (L) is escorted by a special force police officer to an investigation at the Office of the Narcotics Control Board in Bangkok, Thailand, 11 January 2024. The Office of the Narcotics Control Board announced the arrest of Malaysian suspected drug kingpin identified as Ong Gim Wah alleged to be an international drug dealer who was captured at a hideout in Laos on 29 December 2023 in a Thai and Laos police joint operation. Ong Gim Wah who had a one million baht bounty (29,000 US dollars or 26,000 euro) was alleged to have a key role in the procurement of drugs and coordinating with drug networks in the Golden Triangle area since 2006 for smuggling drugs to third countries such as Australia, Malaysia and Taiwan and laundering money in Thailand, according to the Secretary-General of the Office of the Narcotics Control Board (ONCB) Police Lieutenant General Phanurat Lukboon. EPA/RUNGROJ YONGRIT The Paris-based Financial Action Task Force found in the so-called mutual evaluation report, a review carried out by experts from other FATF countries, that while Austria had made some progress since its last such review 10 years ago, much still needed to be done.
"While Austria has improved its understanding and assessment of money laundering and terrorist financing risks since its last mutual evaluation, a nuanced and consistent risk understanding across all competent authorities is yet to be achieved," the FATF, an intergovernmental body, said in a statement.
Weaknesses identified included "insufficient resources as well as limitations in operational independence" at the Austrian Financial Intelligence Unit, a unit of the Criminal Intelligence Service that deals with money laundering, it said.
The punishment imposed for money laundering offences in Austria is also not effective in dissuading would-be offenders, the watchdog said, adding that such sanctions had not yet been applied against any legal person, such as a company.
"Restrictive interpretations of the money laundering offence and high standards of proof continue to limit investigation and prosecution," the FATF said, adding that the number of money laundering convictions remains low.
There are also too few investigators and prosecutors to ensure the recovery of assets linked to financial crimes, and the level of seized assets returned to victims is low, it said.
The report recommended improvements Austria should make within three years, including: "ensuring its financial intelligence unit is appropriately resourced and taking steps to ensure authorities can effectively secure prosecution of the full range of money laundering offences".
The Austrian finance ministry issued a reaction quoting the finance, justice and interior ministers.
"The report is a clear signal that we should continue our joint efforts and continuously adapt instruments to new challenges. Especially in geopolitically uncertain times, Austria has a particular responsibility to do its part with determination," Finance Minister Markus Marterbauer said.
The statement did not directly address the shortcomings identified at the Financial Intelligence Unit.
"Together with the judiciary, the Criminal Intelligence Service's specialists are taking decisive action against money laundering and thus organised crime," Interior Minister Gerhard Karner was quoted as saying, adding that it would move forwards "step by step".
(Reporting by Francois Murphy. Editing by Franklin Paul and Mark Potter)