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New FATF reports: Italy and Austria

Header New FATF reports: Italy and Austria.

Summary

New FATF reports: Italy scores highly on detection, Austria needs to tighten supervision.

30/04/2026

The Financial Action Task Force (FATF) has published the Mutual Evaluation Reports (MER) for Italy and Austria. Although both countries are making progress, the reports show that regulators’ priorities are shifting towards the effectiveness of sanctions and the supervision of so-called ‘gatekeepers’.

 

Italy

Italy is congratulated for its mature system and its effective approach to complex money laundering cases linked to organised crime. The financial sector has a relatively good understanding of the risks, and cooperation between different investigative services and teams, both nationally and internationally, is also good. 

However, there are also clear areas for improvement:

  • UBO register: The FATF has expressed concerns about the limited access to information on ultimate beneficial owners (UBOs), partly due to the previous suspension of the national register.
  • Sanctions policy: The lengthy lead time for imposing financial sanctions in the event of non-compliance is a bottleneck. The publication of such sanctions is also inadequate, which reduces their deterrent effect.
  • Non-financial sector: Although there are registration requirements for, among others, the legal profession and the notarial profession, the effectiveness of supervision varies by sector.

Italy has received a roadmap containing the key recommended measures. One example of such a measure is ensuring that non-financial businesses and professions better understand and address money laundering risks. These measures must be implemented within three years. 

The full report can be found on the FATF website.

 

Austria

According to the FATF, Austria has taken clear steps towards improving the transparency of UBOs and the supervision of the financial sector, but there is still work to be done:

  • The FATF concludes that supervision of the non-financial sector (including lawyers and notaries) suffers from fragmentation and a lack of resources.
  • It is recommended that the operational capacity of the Financial Intelligence Unit (FIU) and the investigative services be strengthened in order to prosecute complex money laundering cases more effectively.
  • Austria has a legal and institutional framework for the detection and prosecution of money laundering, yet strict interpretations of the money laundering offence continue to hinder investigation and prosecution. As a result, the total number of cases remains low.
  • The sanctions imposed for money laundering offences are insufficiently effective and dissuasive.

Austria has also received a roadmap setting out the key recommended measures. One example of such a measure is improving the understanding of domestic and cross-border threats in the area of money laundering and terrorist financing. These measures must be implemented within three years.

The full report can be found on the FATF website.

 

What do these results mean?

The FATF’s conclusions often translate directly into stricter local supervision. For organisations operating internationally or serving clients from these regions, these reports underscore the importance of up-to-date knowledge, robust customer due diligence and a current risk assessment.

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