Since 1 January, 2026 the FMA checks compliance with EU financial sanctions. In your everyday life you might observe this, if, for example, your bank doesn’t execute a securities transaction, or makes enquiries about a credit transfer.
What are financial sanctions?
Financial sanctions are political measures that governments use to restrict capital and payment flows. They are addressed towards specific countries, e.g. the Russian Federation or Iran; towards bodies, companies or individuals – such as in the event of war, terrorism, corruption or severe abuses of human rights. Such sanctions are imposed in the EU by the Council of the European Union or by the United Nations.
The objective is to exert pressure so that governments or organisations change their behaviour without recourse to weapons and therefore to military means.
Where can you see who has been sanctioned?
Persons placed under sanctions are listed in EU Regulations. The EU Sanctions Map provides a good overview about the currently applicable sanctions and the people affected.
What is an “asset freeze”?
If someone is listed on a sanctions list, it may lead to an asset freeze. This means: their funds and assets are frozen. Affected persons are no longer able to access their assets: they are unable to make credit transfers or to withdraw money.
How might this affect you?
Private individuals can also be unintentionally affected, for example when trading in transferable securities. Some securities are not allowed to be bought or sold where there is a connection with persons, companies or governments against whom sanctions have been imposed. Banks and brokers are not allows to execute such orders – even if you have given the order as a client.
Or if you want to transfer money to somebody appearing on a sanctions list. It is important to remember: You are not allowed to give any money to persons or companies against whom sanctions have been imposed, or the provide other forms of economic benefits – not even “by roundabout means”. Attention! You may make yourself liable to prosecution.
How can you assist?
Financial services providers are required to perform checks, make enquiries and sometimes to delay payments where suspicions exist. This is prescribed by law.
It is helpful, if you:
- check details about recipients of credit transfers carefully, especially international transfers
- to respond to bank enquiries quickly and to supply the required information
- to be understanding if payments are blocked or if an account is temporarily restricted.
Other types of sanctions:
Service-related and economic sanctions:
trade embargoes such as prohibiting the importing or exporting of goods or commodities as well as restriction on the provision of services (e.g. legal advice).
Diplomatic sanctions:
Limiting or severing of diplomatic relations to specific states.
Personal sanctions:
Measures taken against individuals such as travel bans on entering or transiting through the EU.
Further information
The FMA’s tasks:
- Monitoring whether financial market participants comply with sanctions regulations
- Processing of applications for releasing frozen assets in exceptional cases stipulated under law.
- Cooperation with European and international authorities
Links:
EU Sanctions Map: www.sanctionsmap.eu
Financial Sanctions: www.fma.gv.at
Supervision > Cross-sectoral topics > Financial sanctions
Other editions:
Find out more:
A-Z of Finance: www.fma.gv.at > A-Z of Finance
Instagram: Let’s talk about money
Podcast: listen here!