Austrian regulators have issued a decree ordering companies to implement the country’s strictest financial regulations.
The directive issued Monday sets out requirements for the “regulation of the financial intermediation of third parties.”
The move comes amid growing concern that Austrian banks are being used by wealthy individuals and businesses to avoid tax by hiding their identities.
Ahead of the decree, the Austrian government also warned that financial institutions should be regulated by the state rather than a private company.
The country’s central bank is the Austrian Central Bank, but the state’s central authority has more power.
The new regulation comes at a time when the country is facing a growing number of reports of tax evasion and other financial crimes, such as money laundering, using offshore companies, and financing the drug trade.