Cash is king

You want to make a large cash deposit, or make a large payment and your are asked for proof of identity, which is then photocopied. Why?

What is the requirement to identify yourself, and why does it exist?

The requirement to identify yourself means you have to present a photo identification document when making certain payments. This may be in the form of a personal identity card, a driving licence or a passport. The companies that are obliged to check your identification document copy it for documentation purposes.

Prevention of money laundering

The requirement to identify yourself helps prevent money laundering, by making the origin of sums of money traceable.

Money laundering and preventing it

Money laundering is the process by which illegally obtained money (e.g. from drug dealing or fraud etc.) is converted into apparently legal money. Criminals attempt to conceal the real origin of money, so that it appears to have come from a legitimate source. Money laundering allows criminals to finance their illegal activities, and may contribute towards facilitating organised crime and terrorism.

How does the prevention of money laundering work?

Due diligence obligations: Companies are required to conduct detailed checked about the identity of their customers, especially where large amounts are involved. Documenting transactions helps to prove the origin of the money.

Reporting requirements: Banks, financial institutions and certain traders are required to report suspicious transactions.

If they receive an unusually high payment, or if a customer’s behaviour seems suspicious, this is reported to the Criminal Intelligence Service Austria (Bundeskriminalamt).

By proving your identity, you contribute to preventing illegal activities and protecting the integrity of the financial system. It also helps to make your own finances more secure, by greatly reducing the risk of fraud and identity theft.

Financial Intelligence Unit (Geldwäschemeldestelle)
Established at Criminal Intelligence Service Austria (Bundeskriminalamt) it checks the relevance of the reports received. If the suspicion of money laundering is confirmed, the matter is passed on to the law enforcement authorities.

Situations, where you are required to prove your identity:

Financial service providers
If you pay in a total of EUR 15,000, begin a new business relationship, or if a suspicion exists that money laundering or terrorist financing might be taking place.

Art dealing
You are required to prove your identity when making payments of at least EUR 10,000, regardless of whether you have paid in cash or not.

Commercial trading
If you make a cash purchase for EUR 10,000 or higher, an identity check is required to be conducted. This can be in relation to purchasing a broad range of products – from antiques and automobiles via

jewellery, cosmetics, electronic devices, furniture, foodstuffs through to specialist pet supplies.

Gambling
Licensed gaming houses are required to check your official photo identification document every time you visit, regardless of whether you will actually be gambling.

Legal professionals
Lawyers and notaries are required to check your identity when conducting certain financial and real estate transactions, especially if the amount involved is EUR 15,000 or higher. Tax advisors and auditors are also required to determine the identity of their clients.

Anti-Money-Laundering Officers
must be appointed by financial service companies and are responsible for ensuring that all measures for preventing money laundering are observed.