Implementing the OECD Anti-Bribery Convention Phase 4 Report: Austria

Implementing the OECD Anti-Bribery Convention Phase 4 Report: Austria

Executive Summary

This Phase 4 report by the OECD Working Group on Bribery evaluates and provides recommendations on Austria's implementation and enforcement of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and related instruments. The report highlights Austria's achievements and challenges, particularly in foreign bribery enforcement since the Phase 3 evaluation in 2012.

Key Achievements and Challenges

Achievements:

• Foreign Bribery Investigations: At least ten foreign bribery investigations were initiated.
• Convictions: Seven cases were concluded through trials, resulting in the first convictions of natural persons for foreign bribery.
• Resource Enhancements: Significant improvements in resources and expertise for law enforcement authorities specializing in anti-corruption, including enhanced capabilities to process and analyze large amounts of digitalized data.
• Mutual Legal Assistance: Improved practices in providing and seeking mutual legal assistance in criminal matters.
• Anti-Money Laundering: Substantial changes were made to Austria’s anti-money laundering and counter-terrorist financing regime.

Challenges:

• High Number of Acquittals: Litigated foreign bribery cases often result in acquittals, possibly due to interpretations of the foreign bribery offense that require additional proof beyond the Anti-Bribery Convention.
• Limited Non-Trial Resolutions: Austrian authorities have limited options for non-trial resolutions, necessitating clearer and more transparent frameworks.
• Inadequate False Accounting Offense: The current false accounting offense hinders effective foreign bribery enforcement.
• Enforcement Against Legal Persons: Limited enforcement against legal persons in foreign bribery cases.

Detailed Analysis

Prevention, Detection, and Reporting:

• Austrian Anti-Corruption Strategy: Detailed strategies and initiatives to prevent and detect foreign bribery.
• Diplomatic Missions: Enhanced due diligence measures and reporting mechanisms.
• Export Credits: Implementation of robust due diligence and reporting requirements.
• Official Development Assistance (ODA): Measures to prevent and detect corruption in ODA contracts, including reporting and whistleblowing mechanisms.
• Tax Measures: Use of tax measures to detect foreign bribery.
• Anti-Money Laundering: Strengthened anti-money laundering measures.
• Accounting and Auditing: Improved standards and practices to detect foreign bribery.
• Self-Reporting: Encouragement of self-reporting by companies.
• Whistleblowing: Comprehensive whistleblower protection mechanisms.

Enforcement:

• Foreign Bribery Offense and Defenses: Detailed examination of the elements and defenses of the foreign bribery offense.
• Investigative and Prosecutorial Framework: Analysis of the investigative and prosecutorial processes, including resources and prioritization.
• International Co-operation: Enhanced mutual legal assistance and extradition mechanisms.
• Legal Persons: Discussion of the liability and enforcement against legal persons, including limitations and challenges.

Conclusions and Recommendations

Part 1: Good Practices and Positive Achievements

• Highlighting successful practices and areas where Austria has made significant progress.

Part 2: Recommendations

• Specific recommendations from the Working Group on Bribery to address the identified challenges and improve enforcement.

Part 3: Follow-Up Issues

• Addressing unresolved issues and ensuring continuous improvement in foreign bribery enforcement.

Annexes

• Annex 1: Details of Austria’s foreign bribery enforcement actions.
• Annex 2: Phase 3 recommendations and follow-up issues.
• Annex 3: On-site visit participants.
• Annex 4: Abbreviations, terms, and acronyms.
• Annex 5: Excerpts of relevant legislation.

Overall, while Austria has made significant strides in foreign bribery enforcement, there remain critical areas requiring further attention and improvement to ensure effective and consistent enforcement of anti-bribery laws.