Opinion of the European Central Bank of 11 November 2024 on the supervision of compliance with sanctions by credit and financial institutions (CON/2024/37)
Date: 2024-11-11
Institutions: European Central Bank
Subjects: banking supervision, financial stability

ECB-PUBLIC 

EN 

 OPINION OF THE EUROPEAN CENTRAL BANK 

of 11 November 2024  

on the supervision of compliance with sanctions by credit and financial institutions 

(CON/2024/37) 

Introduction and legal basis 

On 15 October 2024 the European Central Bank (ECB) received a request from the Austrian Ministry of 

Foreign Affairs for an opinion on a draft federal law adopting a Law on sanctions 2024 and amending the 

Law on sanctions 2024, the Law on banking, the Law on e-money 2010, the Law on the Financial Market 

Authority, the Law on consumer payment accounts, the Law on foreign exchange 2004, the Law on state 

protection  and  the  intelligence  service  and  the  Law  on  the  Austrian  Accounts  Register  and  accounts 

inspection (hereinafter the ‘draft law’). 

The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 

Functioning of the European Union (TFEU) and Article 2(1), third indent, of Council Decision 98/415/EC 1, 

as the  draft law relates  to  the Oesterreichische Nationalbank (OeNB) and  the tasks conferred upon the 

ECB  concerning  the  prudential  supervision  of  credit  institutions  pursuant  to  Article  127(6)  TFEU.  In 

accordance with Article 17.5, first sentence, of the Rules of Procedure of the European Central Bank, the 

Governing Council has adopted this opinion. 

1. 

Purpose of the draft law 

1.1  The draft law regulates the implementation of international sanctions by the United Nations (UN) and 

the Union in Austria as well as the imposition and implementation of national sanctions 2 (hereinafter 

collectively referred to as ‘sanctions’). As noted in the explanatory memorandum accompanying the 

draft law 3, the draft law aims to implement the recommendations of the Financial Action Task Force 

(FATF) and rectify certain issues related to the practical application of the Law on sanctions 20104. 

1.2 

In particular, the draft law revises the distribution of responsibilities among the Austrian authorities 

concerning sanctions. The Federal Minister for Finance and the Financial Market Authority (FMA) 

will assume the duties currently performed by the OeNB under the Law on sanctions 20105. Under 

the draft law, the FMA will henceforth oversee compliance with sanctions by various financial market 

participants, including credit, financial, and payment institutions, which are presently supervised in 

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2  

3  

4    

Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national authorities 
regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 

See Article 1 of the draft law, proposing Section 1 of the Law on sanctions 2024. 

Page 1 of the explanatory memorandum accompanying the draft law.   

Bundesgesetz vom 15.06.2010 über die Durchführung internationaler Sanktionsmaßnahmen (Sanktionengesetz 2010 
– SanktG), BGBl. I Nr. 36/2010. 

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Section 8 of the Law on sanctions 2010.  

 
 
  
 
 
 
 
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this respect by the OeNB in its capacity as the authority responsible for monitoring compliance with 

sanctions.  

1.3  As outlined in the  explanatory memorandum accompanying the draft  law 6, the transfer of powers 

from the OeNB to the FMA is intended to enhance efficiency and capitalise on potential synergies 

stemming  from  the  FMA’s  existing  role  as  the  Austrian  Anti-Money  Laundering/Combating  the 

Financing of Terrorism (AML/CFT) supervisory authority. 

2. 

Observations  

2.1  Cooperation with the ECB in its prudential supervisory function 

2.1.1  Article 127(6) of the Treaty and the provisions of Council Regulation (EU) No 1024/2013 7 (hereinafter 

the ‘SSM Regulation’) confer various specific tasks concerning the prudential supervision of credit 

institutions upon the ECB. For significant credit institutions directly supervised by the ECB, the ECB 

has  the  task,  inter  alia,  of  supervising  compliance  with  relevant  Union  law  imposing  prudential 

requirements  on  credit  institutions,  including  the  requirement  to  have  in  place  robust  governance 

arrangements, such as sound risk management processes and internal control mechanisms 8. In this 

context,  the  ECB  notes  that  on  21  December  2023  the  European  Banking  Authority  published  a 

consultation paper on two  sets of draft guidelines on  internal  policies,  procedures and controls to 

ensure the implementation of Union and national restrictive measures 9 which are addressed, inter 

alia, to prudential supervisors, including the ECB. These draft guidelines aim to clarify how restrictive 

measures  policies  and  procedures  interact  with  financial  institutions’  wider  governance  and  risk 

management frameworks, to avoid operational and legal risks for financial institutions and ensure 

the  effective  implementation  of  restrictive  measures. The  draft  guidelines  may  affect  cooperation 

between  prudential  supervisors  of  credit  institutions  and  the  national  authorities  monitoring 

compliance of credit institutions with restrictive measures.  

2.1.2  The  ECB  neither  imposes  sanctions  within  the  meaning  of  the  Law  on  sanctions  2024  nor  has  it 

received  the  task  of  monitoring  compliance  with  them,  even  if  significant  institutions  directly 

supervised  by  the  ECB  must  comply  with  them.  It  is  for  those  entities  to  implement  and  ensure 

compliance with the relevant sanctions regimes 10. Meanwhile, Member States are responsible for 

laying  down  the  rules  on  penalties  applicable  to  infringements  of  sanctions  applicable  within  the 

Union, take all measures necessary to ensure that they are implemented, and provide for appropriate 

measures concerning confiscation of the proceeds of such infringements.  The Commission assists 

them as necessary with the interpretation of the Union’s restrictive measures.  

2.1.3  Consequently, the draft law does not concern the exercise of the ECB’s prudential supervisory tasks 

or underpin a prudential supervisory function under Union law11. The competences and powers under 

6    

Page 1 of the explanatory memorandum accompanying the draft law.   

7     Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank 

concerning policies relating to the prudential supervision of credit institutions (OJ L 287, 29.10.2013, p. 63). 

8  

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11   

See Article 4(1), points (a), (c) and (e), and Article 6(4) of the SSM Regulation. 

Available on the European Banking Authority’s website at www.eba.europa.eu. The consultation has now been closed. 

See paragraph 2.1.2 of Opinion CON/2024/27. All ECB opinions are published on EUR-Lex. 

See paragraphs 2.4 and 2.5 of Opinion CON/2022/13. 

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the draft law are therefore distinct from, and without prejudice to, the ECB’s prudential supervisory 

tasks under the SSM Regulation. Although the subject matter of the draft law accordingly falls outside 

the ECB’s fields of competence, the exercise of competences by the FMA under the draft law could 

have prudential repercussions for credit institutions concerned, which would need to comply with the 

modalities of the application of sanctions envisaged by the FMA on the basis of the applicable Union 

legislation. Therefore, the ECB would welcome the introduction of a possibility to inform the ECB of 

measures taken under the draft law insofar as such measures could be relevant for the exercise of 

the  ECB’s  prudential  supervisory  tasks  under  the  SSM  Regulation;  for  example,  if  they  have 

prudential repercussions for institutions that fall under the supervision of the ECB 12. Such information 

could be shared using the channels well established and in existence for the AML/CFT information 

flow. Also for this reason, the Austrian legislator may want to consider clarifying that the draft law is 

without prejudice to the tasks and powers conferred on the ECB for prudential supervisory purposes 

under the Treaty and the SSM Regulation13. 

2.1.4  The  current  national  legal  framework  in  Austria  does  not  explicitly  provide  for  cooperation  and 

information exchange between the OeNB and the ECB in relation to sanctions 14. The ECB welcomes 

that  the  draft  law  will  enable  the  FMA  to  share  information  acquired  in  the  conduct  of  FMA’s 

supervisory role related to sanctions with the ECB in its prudential supervisory function in the future15. 

In  this  respect,  the  ECB  understands  that  the  information  exchange  regime  applicable  to  the 

AML/CFT supervision will  also apply to  information obtained  in the field  of monitoring compliance 

with sanctions.  

2.1.5  First, the ECB understands 16 that the FMA will have at its disposal the same supervisory powers and 

measures  as  set  out  in  the  relevant  provisions  of  the  Law  on  money  laundering17  to  monitor  and 

enforce  compliance  with  internal  governance  requirements  on  financial  market  participants 18, 

relevant  legal  acts19  and  directly  applicable  sanctions  measures  of  the  Union 20.  The  relevant 

provisions  of  the  Law  on  money  laundering  contain,  inter  alia,  provisions  on  cooperation  and 

information exchange between the FMA and other authorities. In this respect, the ECB understands 

that  the  FMA  may  exchange  information  and  engage  in  mutual  cooperation  with  certain  other 

authorities insofar as this is useful for the performance of tasks relating to the prevention of money 

laundering and terrorist financing or for other statutory tasks as part of the supervision of the financial 

market. This also explicitly includes exchanges and cooperation with the ECB when the ECB is acting 

in accordance with the SSM Regulation 21. Based on this, the ECB understands that the draft law will 

12  

13   

14   

15   

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18   

19   

20   

21   

For example, the imposition of fines under the third chapter of the Law on sanctions 2024, as proposed by Article 1 of 
the draft law, proposing Sections 16 to 18 of the Law on sanctions 2024.  

See paragraphs 2.1.3 and 2.1.4 of Opinion CON/2024/27. 

See Section 9 of the Law on sanctions 2010. 

See paragraph 2.1.5 of Opinion CON/2024/27. 

See Article 2 of the draft law, proposing Section 12(2) of the Law on sanctions 2024 (entitled ‘Monitoring and mutual 
assistance’). 

See Chapter 7 of the Bundesgesetz zur Verhinderung der Geldwäscherei und Terrorismusfinanzierung im Finanzmarkt 
(Finanzmarkt-Geldwäschegesetz – FM-GwG), BGBl. I Nr. 118/2016. 

See Article 1 of the draft law, proposing Section 7 of the Law on sanctions 2024. 

See Article 1 of the draft law, proposing Sections 2 and 4 of the Law on sanctions 2024. 

See Article 2 of the draft law, proposing Section 12(2) of the Law on sanctions 2024. 

See Section 33(2) of the Law on money laundering.  

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enable the FMA, once it assumes its function as competent authority for monitoring compliance with 

sanctions, to cooperate and exchange information in the field of sanctions with the ECB when the 

ECB is acting in accordance with the SSM Regulation. 

2.1.6  Second, the ECB understands that the transmission to the ECB of information, documents and data 

which the FMA obtained in accordance with its tasks is permitted insofar as the requested information 

is  necessary  for  the  discharge  of  the  ECB’s  statutory  tasks22.  By  extending  the  FMA’s  banking 

supervisory mandate to also cover the monitoring of compliance with sanctions, the FMA will be able 

to  obtain  information  and  data  in  that  field23.  Therefore,  the  ECB  understands  that  information 

gathered by the FMA in its function as the authority monitoring compliance with sanctions under its 

banking supervisory mandate would in principle, subject to an assessment in each individual case, 

not be excluded from the scope of information which may be transmitted to the ECB24.  

2.1.7  The  draft  law  also  introduces  a  new  provision  on  cooperation  and  information  exchange  with  the 

‘European Union’ 25. This provision  provides that enquiries under the  Law on sanctions 2024 may 

also  be  carried  out  at  the  reasoned  request  of  the  Union  and  authorises  the  transmission  of  the 

information collected to the Union, unless such transmission is contrary to overriding public interests 

and, in the case of personal data, to the extent that the transmission is necessary for the purpose of 

performing  the  duties  under  the  Law  on  sanctions  2024.  This  provision  does  not  define  the  term 

‘European Union’ for this purpose;  it could therefore  be interpreted to cover  all  Union institutions, 

including the ECB. The explanatory memorandum accompanying the draft law 26 makes it apparent 

that the legislator at least intended to cover the Commission which, as the guardian of the Treaties, 

also  monitors  the  implementation  of  Union  restrictive  measures.  The  ECB  would  welcome 

clarification of whether the legislator intends to create a separate legal basis in the Law on sanctions 

2024 – in addition to those referred to in paragraphs 2.1.5 and 2.1.6 – enabling the ECB to request 

the information acquired by the FMA in connection with the FMA’s supervisory role related to sanction 

measures adopted by the UN or the Union. 

2.2  Cooperation with ECB in its central banking function 

The  ECB  welcomes  that  the  draft  law  will  also  enable  the  FMA  to  share  information  related  to 

sanctions directly with the ECB in its central banking function in the future. In this respect, the ECB 

understands  that  the  transmission  of  information,  documents  and  data  which  the  FMA  obtains  in 

accordance with its tasks is permitted in crisis situations to central banks of the European System of 

Central  Banks  and  other  bodies  in  the  Member  States  with  a  similar  function  in  their  capacity  as 

monetary authorities when this information is relevant for the exercise of their respective statutory 

tasks, including the conduct of monetary policy and related liquidity provision, oversight of payments, 

22   

23   

See  Section  77(5),  point  (1),  of  the  Bundesgesetz  über  das  Bankwesen  (Bankwesengesetz  –  BWG),  BGBl.  Nr. 
532/1993 (hereinafter the ‘Law on banking’).  

See, in particular, Article 5 of the draft law, which amends the scope of banking supervision as outlined in Section 2(1) 
of the Law on the Financial Market Authority by including the official functions and powers of the FMA set out in the 
Law on sanctions 2024. The ECB therefore understands that the monitoring of compliance with international sanctions 
will be conducted by the FMA as part of its banking supervisory activities. 

24    On the basis of Section 77(5) of the Law on banking.  

25   

26   

See Article 1 of the draft law, proposing Section 12(7) of the Law on sanctions 2024. 

See page 14. 

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clearing and securities settlement systems, and the safeguarding of stability of the financial system27. 

As  noted  above,  under  the  draft  law  the  FMA’s  banking  supervisory  mandate  will  also  cover  the 

monitoring of compliance with sanctions, and the FMA will be able to obtain information and data in 

this field.  Therefore, the ECB understands that the draft law could enable disclosures to the ECB’s 

central banking arm in crisis situations of information that the FMA has obtained in its function as the 

authority monitoring compliance with sanctions. 

2.3  The OeNB’s access to supervisory information in the field of sanctions 

Finally, the ECB welcomes that, following the transfer of powers from the OeNB to the FMA under 

the draft law, the OeNB will retain access to relevant information gathered by the FMA in the context 

of its banking supervisory activities in the field of sanctions via a joint database28 for the purpose of 

conducting supervisory analyses in line with the OeNB’s mandate29. 

This opinion will be published on EUR-Lex.  

Done at Frankfurt am Main, 11 November 2024. 

[signed] 

The President of the ECB 

Christine LAGARDE 

27   

28   

29   

See  Section  77(5),  point  (4),  of  the  Law  on  banking,  which  transposes  into  Austrian  law  Article  114  of  Directive 
2013/36/EU  of  the  European  Parliament  and  of  the  Council  of  26  June  2013  on  access  to  the  activity  of  credit 
institutions  and  the  prudential  supervision  of  credit  institutions,  amending  Directive  2002/87/EC  and  repealing 
Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338).  

Section 79(3) of the Law on banking.  

Section 79(4a) of the Law on banking as amended by Article 3 of the draft law.   

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