1. What is the current legal landscape for White Collar Crime in your jurisdiction?

In Austria, white collar crime enforcement has intensified significantly as a result of the present economic environment and certain, major, corporate failures. The insolvency filing of Austria’s largest real estate group, with proceedings tantamount to the largest bankruptcy in our history, has brought white collar crimes into sharp focus—particularly insolvency-related fraud, money laundering, and liability claims against business managers and advisors.

Recession has driven both public authorities and private parties to pursue criminal complaints more aggressively. The Anti-Fraud Office generated over EUR 107 million in 2024 through completing 6,059 financial criminal proceedings targeting tax-fraud schemes. Money laundering prosecutions have also surged, with Austria’s Financial Market Authority imposing record penalties of EUR 4.3 million in 2024 for AML violations across 14 enforcement actions.

The circumstances surrounding major insolvency cases and increased financial crime investigations are spurring a rise in cross-border white collar crime cases. International cooperation through the European Public Prosecutor’s Office has expanded Austria’s capacity to investigate complex economic crimes spanning multiple EU member states.

Austria’s judicial system is a European leader in digitalization. The Austrian Justice System operates fully electronic case management across 161 offices handling civil, criminal, and insolvency proceedings. The Electronic Legal Communication system (ERV) processed 11.4 million documents electronically in 2024, with over 130 million cases and proceedings available online at any given time. Insolvency filings and non-litigious cases underwent full digitization by the end of 2025, after successful pilot projects. This legal infrastructure enables rapid processing of complex economic crimes while maintaining secure access to case files and enabling remote hearings—critical advantages for managing Austria’s largest insolvency proceedings and international fraud investigations.

2. What three essential pieces of advice would you give to clients involved in White Collar Crime matters?

First, establish robust compliance programs and internal investigation capabilities. Austrian law imposes significant corporate criminal liability under the Corporate Criminal Liability Act (VbVG) for crimes committed by employees, managers, or representatives, with fines reaching up to EUR 3.9 million for serious offenses. However, the presence of an effective compliance model—established before misconduct occurs—can substantially mitigate sanctions — or even result in conditional prosecution dismissals under Section 19 VbVG.

Second, secure adequate Directors’ and Officers’ (D&O) insurance coverage and understand personal liability exposure. Austrian law holds directors and officers personally liable for negligent or intentional breach of their fiduciary duties of care and loyalty. Given the rise in claims against company decision-makers and advisors, particularly in insolvency contexts, D&O insurance coverage becomes crucial. Note, however, Austrian D&O policies typically exclude coverage for fraud, dishonesty, wilful default, or criminal behavior, so clients must carefully review policy terms. The Business Judgment Rule provides some protection for directors acting in good faith, but this standard remains fact-specific and sometimes unpredictable.

Third, implement proactive third-party due diligence and anti-money laundering safeguards. With Austria’s Financial Market Authority pursuing zero-tolerance enforcement and record fines of EUR 4.3 million in 2024 for AML violations, clients face substantial regulatory risk. Companies must conduct rigorous transactional and third-party due diligence, regularly review internal AML/compliance policies, and establish procedures for detecting suspicious financial activity and reporting obligations. Counsel should advise clients on disclosure obligations and representation before authorities, particularly when investigations involve the Financial Market Authority, or the Prosecutor’s Office.

3. What are the greatest threats and opportunities in White Collar Crime law in the next 12 months?

Key threats to Austria’s financial integrity increasingly stem from the rising sophistication and transnational reach of financial crimes driven by digitalisation. The proliferation of crypto-assets and cyber-enabled fraud has fundamentally altered the risk landscape. While virtual currencies are profoundly exploited for money laundering, cybercrime schemes, including ransomware and data breaches, intensify operational vulnerability for corporations.

In response, Austria has considerably strengthened its legal architecture. The 2025 amendments of the Criminal Procedure Code have introduced faster mechanisms for asset freezing, seizure and tracing of digital value transfers. These reforms also enhance prosecutorial access to electronic financial records, thereby enabling swift responses to illicit activities. The creation of specialised prosecutorial networks and digital mutual assistance bolsters Austria’s commitment to cross-border cooperation, especially within the EU’s anti-money laundering and counter-terrorist financing framework.

Another important change to the law on business crimes took place with the introduction of the legal consequences of disqualifying a person convicted of certain offences as a managing director or board member for a period of three years.

Moreover, the new whistleblower protection framework aligns with Financial Action Task Force (“FATF”) recommendations, promoting internal reporting and corporate transparency, which could lead to leniency in enforcement proceedings.

The convergence of Austrian national reforms with FATF guidance presents both pressure and opportunity: pressure to maintain compliance amid accelerating technological change, and opportunity for Austria so solidify its role as a capable and cooperative jurisdiction in the global fight against white-collar crime.

4. How do you ensure high client satisfaction levels are maintained by your practice?

Ensuring exceptional client satisfaction within our White-Collar Practice draws upon our foundational commitment to delivering high-quality, personalised, legal counsel combined with deep sector expertise and constantly-reviewed and cumulative strategic acumen. At KNOETZL, we prioritise transparent, proactive communication, ensuring clients remain fully informed of case developments and potential legal risks. We believe this cultivates trust, allows for well-informed decision making and reduces uncertainty during complex proceedings. Our agile and experienced team approaches each dispute with meticulous planning, leveraging cutting-edge legal thinking while deploying resources efficiently to balance excellence with cost-effectiveness.

We maintain strict confidentiality and uphold ethical standards, fostering a collaborative environment in which our client’s dignity and interest are paramount. Additionally, by fostering long-term relationships, we develop unparalleled knowledge of client’s industries and risk profiles, and trends within authorities, enabling anticipatory guidance and bespoke advice that adapts to the dynamic, enforcement, and legal regulatory landscapes.

5. What technological advancements are reshaping White Collar Crime law and how can clients benefit from them?

Advanced Artificial Intelligence (AI) and machine learning algorithms have become pivotal tools of sophisticated investigation and compliance tools capable of processing vast volumes of data, detecting intricate patterns, and uncovering illicit activities that traditional methods may overlook. A principal advantage of AI in this domain is its transformative capacity to streamline facts through enhanced screening of extensive datasets while simultaneously identifying anomalies, hidden relations and irregularities. This enables legal counsel to concentrate on the strategic dimensions of defence with greater efficacy.

Another advantage of AI is that is significantly advances legal research by narrowing search parameters and delivering highly precise results tailored to the specifics of each case. It facilitates the analysis of historical precedents, offering invaluable insights for the development of robust defence strategies.

However, it is important to critically assess both the benefits and inherent risks associated with automating evidence collection and analysis. The establishment of and adherence to guidelines and best practice is essential to ensure that the development of AI tools preserves procedural fairness and safeguards the integrity of judicial processes.