1998 International Narcotics Control Strategy Report

Bureau for International Narcotics and Law Enforcement Affairs
United States Department of State
February 26, 1999

AUSTRIA

I. Summary

Austria is primarily a transit country for drug trafficking from the Balkans to western European markets. Illegal drug consumption is not a severe problem in Austria, and there is no significant production or cultivation of illegal substances. Organized drug trafficking is performed largely by non-Austrian criminal groups. New investigative tools were legislated in 1997 and 1998 to counter the growth of this crime. The passage of a new narcotics law in 1997 allowed Austria to ratify the 1971 and 1988 UN Drug Conventions in 1997. A November 1998 government report expresses concern over the continued rise of organized crime in Austria, which it attributes predominantly to mafia gangs from NIS countries. While not considered an important financial center, offshore tax haven or banking center, Austria remains an attractive site for drug-related money laundering. The government continues to implement measures to narrow avenues for money launderers and facilitate asset seizure and forfeiture. While cooperation with U.S. authorities is excellent, Austrian law enforcement authorities charged with combating narcotics complain about notorious underfunding and lack of personnel.

II. Status of Country

Although not a significant producer of illicit drugs, Austria remains a transit country for drug-related organized crime along the major European drug routes. Foreign-based drug crime by organized groups continued to grow in Austria in 1998. A November 1998 government report maintains that up to 30 percent of serious crimes in Austria in 1998 can be traced to organized crime groups, most of which originate in the NIS. Despite limited appeal of anonymous passbook savings accounts for criminal purposes, possibilities for money laundering through other, unmonitored transactions remain.

III. Country Actions Against Drugs in 1998

Policy Initiatives. The new Narcotic Substances Act, which went into effect January 1, 1998, focuses on therapy for drug users while maintaining severe penalties for drug dealers. While drug dealers may face up to 20 years in prison, first-time users of cannabis may avoid criminal proceedings if they agree to therapy.

New legislation went into effect in July 1998, allowing technical surveillance of persons "strongly suspected" of having committed crimes punishable up to 10 years. The new regulations facilitate surveillance of persons on which there is "substantial suspicion" that they belong to a criminal organization.

A new police powers law submitted to parliament in November 1998 seeks to authorize investigators to obtain personal data from private telephone companies in clearly defined situations (including suspicion of organized crimes). A proposal to allow police to collect and analyze information about likely extremist/terrorist groups without judicial approval and prior to the establishment of "substantiated suspicion" was postponed until 1999.

Accomplishments. During its EU presidency (July-December 1998), Austria sought to advance work on a second "EU Drug Action Plan" for the period 2000-2005 as well as to intensify cooperation with eastern European accession countries, including in the area of demand reduction. Austria actively participated in the "European Awareness Week on Drug Prevention" November 5-12, 1998. Under the auspices of the European Commission and the Vienna-based UNDCP, the city of Vienna hosted the "European Drug Conference 1998," which focused on "drug prevention and drug policy." Throughout 1998, Austrian experts participated in a series of anti-drug projects within the framework of the EU's Monitoring Center for Drugs and Drug Addiction (EMCDDA).

Law Enforcement Efforts. The overall number of drug-related criminal offenses in Austria in 1997 increased by 10.3 percent to 17,868. Serious drug-related crime rose by 25.4 percent to 2,712 over the same period. Authorities believe that one out of two criminal offenses is drug-related. In 1997, the number of seizures rose by 7.4 percent to 7,117.

Corruption. An October 1998 penal-code amendment tightened regulations against bribery and corruption and allowed the GOA to join the OECD Anti- Bribery Convention. Ratification is expected in early 1999.

The GOA has public-corruption laws that recognize and punish the abuse of power by a public official. The USG is not aware of any high-level Austrian government officials' involvement in drug-related corruption.

Agreements and Treaties. The US-Austrian Mutual Legal Assistance Treaty, signed in 1995, was ratified by the Austrian parliament in June 1998. Exchange of the instruments of ratification is still pending. A new US- Austrian Extradition Treaty was ratified by Austria in mid-1998, approved by the U.S. Senate in October 1998, and is pending ratification. Austria ratified the 1988 UN Drug Convention as well as the 1971 UN Convention on Psychotropic Substances and the Council of Europe Convention in 1997. Austria ratified the Europol Convention in early 1998. Austria is a party to the 1961 Single Convention on Narcotic Drugs and its 1972 Protocol. Vienna is the seat of UNDCP, and Austria is a UNDCP major donor. Austria participates in the World Health Organization, the Dublin Group within the EU, the Financial Action Task Force on money laundering (FATF) and the Council of Europe's "Pompidou Group."

Cultivation and Production. The USG is not aware of any significant cultivation or production of illicit drugs in Austria.

Drug Flow/Transit. Traditionally, the routes of the Balkan drug path have been the major venues for illegal import/transit of southwest Asian heroin through Austria. The illicit trade is dominated by Turkish groups, followed by traffickers from countries of the former Yugoslavia, by Romanian and Bulgarian nationals, as well as by Macedonian and Albanian dealers, who continue to use nearby Bratislava, Slovakia as a temporary depository for heroin. Cocaine is imported by couriers of South American drug cartels who increasingly rely on Eastern European airports.

Domestic Programs. Austrian authorities view drug addiction as a disease rather than a crime, a fact reflected in recent drug legislation (1997) and related court decisions. Demand reduction puts emphasis on primary prevention, drug treatment and counseling, as well as on "harm reduction." The use of heroin for therapeutic purposes is generally not allowed.

Primary intervention extends from preschool to secondary-school levels and relies on "educational campaigns" inside and outside school fora. Austria has syringe exchange programs in place for HIV prevention. AIDS cases declined in 1998, while the spread of Hepatitis B and C represents a new problem. Substitution programs, such as methadone, have been in place for over a decade.

IV. U.S. Policy Initiatives and Programs

Multilateral Cooperation. Throughout Austria's EU presidency (July-December 1998), the U.S. sought to increase cooperation with the EU on narcotics issues. Under Austria's presidency, the EU pledged $31 million toward the Peru Donors Conference. The Austrian EU presidency also encouraged exploring the possibility of using the Caribbean Drug Initiative as a model of US-EU cooperation for fighting the illicit narcotics trade in other regions. Finally, the Austrian EU presidency has advocated that the EU pursue more ambitious counternarcotics efforts in Central Asia and has requested and appreciated information on U.S. counternarcotics assistance to the Central Asian republics.

Bilateral Cooperation. Although Austria has no specific bilateral narcotics agreement with the US, Austrian cooperation with U.S. investigative efforts is excellent. In July 1998, Austrian authorities' cooperation with U.S. officials resulted in the seizure of 102,000 tablets of ecstasy. The U.S. has requested that all three individuals arrested in this case be extradited to the US. The U.S. Office of National Drug Control Policy Director, Barry McCaffrey, used his July 1998 Vienna visit to explain the goals of the "National Drug Control Strategy 1998" to Austrian and UN officials.

The Road Ahead. The U.S. 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 US-EU initiatives. Promoting a better understanding of U.S. drug policy among Austrian officials will remain a priority.