FM-GwG & Sanctions Act 2024: New Obligations for Cryptos, Compliance & Sanctions Monitoring

As part of implementing EU directives and FATF recommendations, Austria has enacted profound legal changes. With the FM-GwG Amendment Act 2024 and the new Sanctions Act 2024, the Gambling Act (GSpG) has also been comprehensively amended. The changes particularly affect the fight against money laundering, terrorism financing and – brand new – the non-implementation and circumvention of targeted financial sanctions related to proliferation financing.

The international community of states – led by the Financial Action Task Force (FATF) – is increasing pressure on member states to focus more on the financing of weapons of mass destruction (proliferation). Austria is reacting with clear regulations that you should definitely be aware of if you are an crypto asset service provider, payment institution, credit institution, or gambling provider.

§11a FM-GwG: More Responsibility with Self-hosted Wallets

The new §11a brings significant changes for crypto asset service providers:

• You must identify, assess, and take appropriate measures to address risks from self-hosted addresses.

• This also involves the risk of non-implementation or circumvention of targeted financial sanctions related to proliferation financing.

• You are obligated to obtain additional information about the origin or destination of the transferred crypto assets and verify the identity of the parties involved (possibly even through third parties).

Particularly for transactions without an intermediary service provider – as is common with self-hosted wallets – the risks increase. Your risk management system must reflect this.

§23a FM-GwG: Identify and Control Sanctions Risks

The new §23a introduces a central element to combat proliferation financing. What does this mean for you?

• You must introduce strategies, controls, and procedures to assess, manage, and minimize the risk of non-implementation and circumvention of sanctions related to proliferation financing.

• The requirements must be documented in writing, approved by the management body, and continuously updated.

• Additionally, a special officer (a “sanctions officer”) must be appointed to monitor compliance.

• Training for your employees and an independent audit (e.g., by internal audit) are also mandatory.

If you are part of a group, these obligations apply at the group level too. This means your branches and subsidiaries – even abroad – must adhere to the same standards.

Sanctions Act 2024: New Responsibilities, Clear Guidelines

With the Sanctions Act 2024, an independent law for implementing international sanctions is being introduced for the first time. It replaces the sanctions law of 2010 and introduces the following innovations:

• The FMA will assume responsibility for supervision starting in 2026 – this was previously with the Oesterreichische Nationalbank (OeNB).

• You must be able to implement sanction measures within 24 hours.

• There are new obligations for information exchange between authorities and with the EU or UN.

• The regulations are heavily oriented towards §23a FM-GwG – here too, risk analysis, a control system, reporting obligations, and the appointment of an officer are envisaged.

For crypto asset service providers, payment institutions, and insurers, this is particularly relevant: a “sanctions monitoring light” applies to them as of 2025 – fully from 2026.

Gambling Act: Proliferation Financing in Focus

The gambling sector is not left out. The GSpG has been adjusted in several paragraphs – with far-reaching consequences:

Overview of New Requirements

• In §5, §14, §19, §21, and §31 GSpG, it is now explicitly stated that the risk of proliferation financing must also be considered.

• You must ensure that your internal processes reflect the new due diligence obligations.

• Here too, the FMA will assume a supervisory role – by 2026 at the latest.

• Changes take effect partly immediately, partly staggered – by January 1, 2026, at the latest.

What Does This Mean for You as a Gambling Provider?

• You must revise your internal processes.

• Ensure that you can identify suspicious transactions, including those related to proliferation financing.

• Your risk management system must be adjusted and expanded to include this new aspect.

WiEReG Amendment: More Transparency in Nominee Agreements

The changes to the Beneficial Owners Register Act (WiEReG) aim to illuminate opaque structures – such as through nominee agreements.

What You Need to Know Now:

• Nominee agreements must be reported and disclosed.

• There are new definitions for nominator, nominee, and nominee director.

• The reporting obligations for legal entities are also expanded, as is the authority of the registry authority to review.

• Non-compliance will lead to significantly increased administrative fines – up to 75,000 euros in cases of intent.

Conclusion: It’s Getting Serious – Act Now!

You see: With the FM-GwG Amendment 2024, the new Sanctions Act, and the expansion to gambling law, a lot is coming your way.

Here’s What You Should Do Now:

• Examine your existing processes and policies.

• Appoint a sanctions officer if not already done.

• Adjust your risk analysis, especially at the group level.

• Train your employees on the new requirements.

• Prepare for audits by FMA or external bodies.

These reforms are not just a legal obligation – they are a clear signal: The fight against money laundering, terrorism financing, and proliferation financing is being taken to a new level. Be prepared – and set a good example.