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Business Setup and Support in Austria FINANCIAL MONITORING IN AUSTRIA

Taras Miroshnychenko

Head of practice

E-mail

miroshnychenko@prikhodko.com.ua

Phone numbers

Head of Corporate Law and Fintech Practice. Expert in the creation and reorganization of companies, support of M&A transactions, as well as legal support for opening and running a business in the EU, Asia, and North America.

FINANCIAL MONITORING IN AUSTRIA

Financial monitoring in Austria is one of the key procedures for businesses and individuals planning to open accounts, invest or carry out large transactions.

Given the strict requirements of AML (Anti-Money Laundering) and KYC (Know Your Customer), it is almost impossible to pass this stage without clear preparation.

The law firm “Prikhodko and Partners” helps Ukrainian clients successfully undergo monitoring, reducing the risks of account blocking and bank refusals.

How to undergo financial monitoring for a legal entity and an individual?

In Austria, both companies and individuals are monitored. For businesses, it is important to demonstrate a transparent ownership structure, the legality of the origin of funds, and the reality of the activity.

For individuals, it is important to confirm the sources of income (salary, dividends, sale of assets) and the absence of suspicious transactions.

According to statistics from the OeNB (Austrian National Bank), in 2024, more than 18% of applications for opening accounts were rejected due to failure to pass monitoring.

What is needed for this, what are the requirements of local legislation?

The requirements are governed by the Money Laundering Prevention Act (FM-GwG) and the Banking Act 1993 (BWG).

You must provide:

Documents confirming the ownership structure (Ubo structure).
Confirmation of the origin of funds (bank statements, contracts).
Tax returns for 2-3 years.
Evidence of business activity (contracts, invoices).

For individuals, they additionally request information about sources of income abroad and connections with politically exposed persons (PEPs).

Basic requirements for financial monitoring

Key requirements:

Full transparency of beneficiaries.
Legality of the source of funds.
No ties to sanctioned regimes or individuals.
Availability of proven business models for companies.

Even a single large transaction can be grounds for blocking an account if there are no clear explanations and documents.

Procedure and deadlines

The procedure includes a preliminary document check, online or offline client identification, and transaction activity analysis.

On average, Austrian banks monitor for 2-4 weeks, but for complex cases this period can reach 2-3 months.

How much does it cost to conduct a legal audit of a company?

The cost of legal due diligence in Austria depends on the size of the company and the scope of the audit.

If necessary, the law firm “Prikhodko & Partners” has proven experience in working with local auditors and banks, which allows you to optimize costs and ensure high-quality preparation of documents.

It will also be useful: Company Registration in Austria

The main difficulties in passing financial monitoring

Non-compliance of Ukrainian documents with the requirements of Austrian banks.
Lack of English or German-language confirmations.
Opaque company structure or unknown beneficiaries.
Links to high-risk countries.

In 2024, more than 25% of Ukrainian applicants faced blocking of accounts in Austria precisely due to difficulties or inaccuracies in confirming the origin of funds.

What is the interaction with the EU and Ukraine?

Austria complies with EU Directive 2015/849 on the prevention of money laundering, so cooperation with Ukraine takes place through the exchange of tax and financial information (CRS, AML platforms). This means that data on Ukrainian beneficiaries can be transferred automatically.

How we help with financial monitoring

The law firm “Prikhodko and Partners” offers comprehensive support: from document preparation and localization of Ukrainian packages to full support of contacts with banks and auditors in Austria.