English »Legal Updates
No safe deposit box stays anonymous
Financial institutions which legally don’t count as credit institutions are authorized to offer safe custody services as their principal activity. The Supreme Administrative Court recently ruled that also in cases where the financial institution doesn’t lock the safe itself, it is a safe custody service. Therefore, the provisions of the Financial Markets Anti-Money Laundering Act and the relevant provisions of the Banking Act also apply for “anonymous” safes accordingly. Financial Institutions must identify every customer who keeps a safe deposit box. (Ro 2017/02/0023)
6. December 2017
One bank for everything
On 12.10.2017 an amendment of the Austrian Consumer Payment Account Act (VZKG) was approved by the National Council. The amendment concerns cash withdrawals at ATM’s. In the future, banks must also pay the fees for cash withdrawals of their customers at independent third-party ATM providers. This means that banks won’t have control over the amount and frequency of withdrawals by their customers and therefore also won’t be able to control the charged fees by such third-parties (contract at the expense of third parties). Considering constitutional rights the amendment is highly questionable.
27. October 2017
ECJ defines “easily accessible manner”
The Payment Services Act requires the making-available of certain information in an easily accessible manner on a durable medium. For a long time, it was unclear what fulfils these requirements. Sending information to the internal inbox on the e-banking platform is not sufficient according to the ECJ. Usually the e-banking inbox is used for communication with the bank only. To make sure that the information is made available in an easily accessible manner, this information must be sent to a private e-mail account. (8Ob14/17t)
17. October 2017
Interest adjustment clauses: Reference interest rates apply even when below zero
Lending rates are regularly agreed on a variable basis. The total interest rate usually consists of a reference interest rate and a margin. With reference interest rates being extremely low and with several indices even dropping below zero, it is hotly disputed where to “draw the line”. There are good reasons for the borrower paying at least the margin. The Supreme Court for Civil Matters however answers the question in the negative. Variable lending rates consist of the sum of the reference interest rates and interest margin. (3Ob88/17p)
8. September 2017
More transparency or more bureaucracy ?
The Ultimate Beneficial Owner Register Act (WiEReG) was approved by the National Council at the end of June and by the Federal Council at the beginning of July. The Act implements key parts of the 4th European Anti – Money Laundering Directive, which provides for the introduction of a register of ultimate beneficial owners throughout the EU. The registration authority is established at the Austrian Ministry of Finance. The ultimate beneficial owners of companies (thus also of complex corporate structures), other legal entities and certain trusts must be registered.
15. August 2017