Luxembourg (APA) – The European Court of Justice (ECJ) has ruled that Austria’s legal provisions concerning the liability of legal entities for anti-money laundering violations and related limitation periods are only partially aligned with EU law. While the court found no inconsistencies with the EU Anti-Money Laundering Directive regarding limitation periods, it identified issues concerning the liability of legal persons in its judgment delivered on Thursday (Case C 291/24).
This ruling stems from a case where the Austrian Financial Market Authority (FMA) imposed sanctions on Steiermärkische Bank und Sparkassen AG for failing to meet due diligence requirements. The bank subsequently filed a complaint alongside two individuals with the Austrian Federal Administrative Court (BVwG).
The BVwG questioned whether the Financial Markets Anti-Money Laundering Act’s stipulation that ties the liability of a legal entity to that of a specifically identified individual violates EU anti-money laundering regulations. It also sought clarity on the compatibility of the Act’s limitation periods with EU law.
Incompatibility of Liability Provisions with EU Law
The ECJ concluded that, in cases of legal entity violations, it is not mandatory for an individual to have formally been designated as an accused party. The ruling emphasizes that “the liability of natural persons under national law is merely accessory and complements the legal entity’s liability.” Consequently, the individual does not need to be explicitly identified as the responsible party, indicating that the national regulations conflict with the EU directive.
This decision contrasts with the views of Advocate General Tamara Ćapeta, who, in her July 2025 opinion, had found no conflict between the national provisions and EU law.
However, the ECJ found no issues with the limitation periods outlined in Austrian law, which prescribe a three-year limitation period for prosecuting infringements and a five-year period for imposing penalties. (29.01.2026)
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