U.S. Department of State
1996 International Narcotics Control Strategy Report, March 1997

United States Department of State

Bureau for International Narcotics and Law Enforcement Affairs

AUSTRIA

I. Summary

II. Status of Country

Austria has a system for identifying, tracing, freezing, seizing and forfeiting drug-related assets, but does not share seized assets with other countries. The Government of Austria (GOA) passed legislation in 1996 to abolish anonymous securities accounts, for future accounts. To limit insider trading on the Vienna stock exchange, however, the old ones may be sold off with anonymity intact. The legislation also limits the ability of criminal enterprises to conceal their profits. Austria requires bankers and other financial institutions, including insurance companies, to report suspicious financial transactions; however, other sectors such as real estate, automobile sales, and attorneys' services are not required to report suspicious transactions. This lack of reporting requirements and continued allowance of anonymous pass book accounts leave Austria vulnerable to exploitation by money launderers.

Austrian authorities reported no cases of the diversion of precursor and essential chemicals from Austria to drug traffickers in 1996.

III. Country Action Against Drugs in 1996

The GOA drafted legislation to enhance narcotics-related investigations. When enacted, the new legislation will reduce restrictions on the use of wiretapping and other electronic surveillance methods, provide legal authority to merge data banks, and allow for the establishment of witness protection programs. The Austrian Parliament is expected to review and bring this legislation to a vote in 1997.

Austria participates in a number of international counternarcotics fora including the Dublin Group, the Financial Action Task Force, the Council of Europe's "Pompidou Group," and the United Nations International Drug Control Plan (UNDCP). Austria contributed $995,000 to UNDCP in 1996.

Accomplishments. In August 1996, legislation took effect to abolish anonymity for securities accounts in Austria. In November 1996, Parliament passed a penal code amendment to expedite extradition, expand judicial assistance, enable courts to declare assets of criminal organizations as forfeited, and to enable courts to confiscate property and assets derived from the proceeds of illegal activities, including drug trafficking.

Law Enforcement Efforts. The number of drug-related criminal offenses in Austria increased by 3.7 percent to 13,093 in 1995 (latest available figures) from 1994. GOA authorities believe that one out of two criminal offenses are drug-related. The number of drug seizures and the amounts of most narcotic substances seized increased in 1995 from 1994. In 1995, there were 3,757 seizures of various forms of cannabis totalling 697 kgs, 10 seizures of poppy straw totalling 8.6 kgs, 17 seizures of raw opium totalling 1.8 kgs, 1,298 seizures of heroin totalling 47 kgs, 421 seizures of cocaine totalling 55 kgs, 80 seizures of LSD totalling 2,602 dosage units, and 153 seizures of ecstasy totalling 31,338 doses.

Corruption. The USG is not aware of high-level Austrian government officials' involvement in drug-related corruption.

Agreements and Treaties. Austria signed a mutual legal assistance Treaty with the USG in 1995 which was ratified in November. Austria is expected to ratify the MLAT in the Spring of 1997. Negotiations continue with the US on a new extradition treaty to replace the 1934 treaty currently in force. Austria has signed, but not ratified, the 1988 UN Convention. A new drug bill awaiting parliamentary approval will enable Austria to ratify this Convention, as well as the 1993 Council of Europe Convention on laundering, tracking, and seizing profits from criminal actions. Austria is a party to the 1961 Single Convention on Narcotic Drugs and its 1972 Protocol.

Cultivation/Production. Austria's Health Ministry reports that some home-growing of cannabis in small quantities takes place. The USG is not aware of any other significant cultivation or production of illicit drugs in Austria.

Drug Flow/Transit. Southeast Asian heroin enters Austria via the Balkan drug route, and is mostly destined to larger markets in Europe. Turkish groups dominate this trade, followed by traffickers from countries of the former Yugoslavia. Romanian and Bulgarian nationals have also become increasingly active. In 1995, drug arrests at Vienna's international airport rose from 79 in 1994 to 120, but the size of seizures decreased. Austrian authorities believe that South American drug cartels are increasingly using East European airports in their drug routes.

Demand Reduction. Austrian authorities tend to address drug addiction as a health issue rather than a criminal matter. Federal Ministries' programs emphasize prevention, drug treatment and counselling, as well as "harm reduction." Primary intervention encompasses the pre-school through secondary school levels, and includes information kits and videos, as well as extra-curricular youth counselling, educational campaigns via mass media, telephone services, and community programs, such as drug-free discotheques. Most drug treatment, and counselling services are provided by non-government organizations.

IV. US Policy Initiatives and Programs

The Road Ahead. The US will continue to support Austrian efforts to create more effective tools for law enforcement, as well as to work with Austria within the context of U.S.-EU counternarcotics cooperative initiatives. The USG will continue urging GOA ratification of the 1988 UN Convention, and further toughening of its money laundering legislation.