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TO RUEHC/SECSTATE WASHDC IMMEDIATE 5813
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UNCLAS SECTION 01 OF 06 VIENNA 003584 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR S/CT (RHONDA SHORE) AND EUR/AGS (SAINT ANDRE) 
 
E.O. 12958: N/A 
TAGS: PTER ASEC KCRM KPAO KHLS AEMR EFIN AU
SUBJECT: AUSTRIA: 2006 COUNTRY REPORT ON TERRORISM 
 
REF: STATE 175925 
 
¶1.  Per reftel, Post is submitting the 2006 Country Report on 
Terrorism for Austria.  Embassy POC for this report is 
Economic-Political Officer Dayna R. Robison, office phone: 
43-1-31339-2196 and email: RobisonDR(at sign)state.gov.  Post 
emailed the updated Intellipedia version of this report to 
the Department on December 20, 2006. 
 
Summary 
------- 
 
¶2.  Summary.  Austria is a constructive ally in the fight 
against terrorism.  In 2006, it allocated twelve million 
euros for counterterrorism measures and strengthened its 
export controls on weapons and dual-use goods.  Austria held 
the EU Presidency during the first half of 2006, and held a 
series of high-profile talks.  In May, Austria hosted a 
conference of Justice and Interior Ministers from the EU, 
U.S., and Russia, who signed a declaration to increase 
cooperation against terrorism.  President Bush attended the 
U.S.-EU Summit in June.  Austria has a comprehensive legal 
framework to combat money laundering and terrorism financing 
and has achieved compliance with FATF's nine Special 
Recommendations.  In 2006, Austria maintained three police 
instructors at the Iraqi police academy in Jordan.  It has 
380 UNDOF peacekeepers in the Golan Heights, seven UNTSO 
observers in Jerusalem, and four liaison officers at the ISAF 
headquarters in Kabul.  Austria also has troops and police 
representatives in the Balkans.  During 2005 and the first 
half of 2006, the Interior Ministry stopped nine shipments of 
dual-use goods that were destined for Iran, Saudi Arabia, 
Pakistan, and North Korea.  End Summary. 
 
General Assessment 
------------------- 
 
¶3.  Austria continues to be a constructive ally in the fight 
against terrorism and a leader in implementing regional 
anti-terrorism strategies.  It follows a two-tiered strategy 
of protection and prevention in its fight against terrorism. 
Terrorist acts are prosecuted in accordance with Austria's 
general criminal statutes and Austria has a comprehensive 
legal framework in place to combat money laundering and 
terrorist financing. 
 
¶4.  A top priority for Austria, given current demographic 
trends in Europe, is to maintain a productive and fruitful 
intercultural and religious dialogue with its Muslim 
community, in particular.  These and related efforts, such as 
providing educational, linguistic, and vocational assistance, 
are part of Austria's strategy to promote social and economic 
integration, prevent the isolation of ethnic and religious 
groups, and stop radicalization. 
 
¶5.  Austrian authorities believe the likelihood of a 
terrorist attack in Austria is low.  According to a recent 
poll, only 17 percent of Austrians fear a terrorist attack in 
Austria.  According to a 2006 report on counterterrorism by 
the Interior Ministry's Federal Office for the Protection of 
the Constitution and for Counterterrorism (BVT), extremists 
could use Austria for "logistical support activities" in the 
medium term.  The BVT report warns that second and third 
generation Muslim immigrants, who feel marginalized or are 
not well-integrated into society, are vulnerable to 
radicalization. 
 
¶6.  As a percentage of the population, Austria has the second 
largest share of Muslims in its population of all EU members, 
behind France.  There are approximately 340,000 Muslim 
citizens or legal residents in Austria, or 4.2 percent of the 
population, according to a 2001 census.  The government views 
the Austrian Muslim community as moderate and highly 
cooperative.  Resident Austrian Muslims are primarily of 
Turkish (about 120,000) and Bosnian (about 50,000) descent. 
According to the census, the largest concentrations of 
Muslims are in the Austrian province of Vorarlberg (8.4 
percent) and in Vienna (7.8 percent), which is home to one 
third of the Austrian Muslim population.  Austria is also 
home to approximately 16,500 Chechen refugees.  A 
controversial study published by the Interior Ministry in May 
2006 claimed that 45 percent of Muslims living in Austria are 
unwilling to integrate. 
 
¶7.  During its Presidency of the European Union from January 
to July 2006, Austria encouraged the Member States to 
implement the EU's anti-terrorism agenda.  Key objectives 
include improving efforts against terrorism financing, 
improving the exchange of law enforcement information within 
 
VIENNA 00003584  002 OF 006 
 
 
the EU, and strengthening EUROPOL.  In May, Austria hosted a 
ministerial conference on "The Role of Internal Security in 
Relations Between the EU and Its Neighbors."  The 
participants, including U.S. Attorney General Alberto 
Gonzales and Department of Homeland Security Deputy Secretary 
Michael P. Jackson, signed the "Vienna Declaration on 
Security Partnership."  This document called for increased 
cooperation in the fight against terrorism, organized crime, 
corruption, and illegal migration and the need to further 
develop the dialogue between religions and cultures. 
 
¶8.  In May, the Austrian Presidency presented a media 
communications strategy for preventing radicalization and 
recruitment at the bi-annual U.S.-EU dialogue on 
counterterrorism.  In June, President Bush, Secretary of 
State Condoleezza Rice, and other senior U.S. officials 
attended the U.S.-EU Summit in Vienna.  Counterterrorism 
discussions focused on the implementation of biometric 
standards and on preventing terrorist financing, 
radicalization, and recruitment. 
 
¶9.  Austria continues to promote inter-cultural dialogue as 
an integral part of its counter-terrorism strategy.  In 
April, the government hosted the second European Conference 
of Imams in Vienna.  In May, the Austrian government convened 
a "Dialogue Between Cultures and Religions" for high-ranking 
government and religious leaders from around the world.  The 
government is planning a follow-up conference on Islam in 
April 2007.  That conference will focus on the role of women. 
 
¶10.  Austrian officials remain highly responsive to U.S. 
requests for proliferation-related interventions, both 
diplomatically and in terms of concrete law enforcement 
action.  During the reporting period, government agencies 
continued to sensitize customs officials and the business 
community to proliferation-related trading schemes, and 
encouraged intensified monitoring of commercial shipments. 
 
¶11.  In November, terrorism hit closer to home in Austria 
when Iraqi insurgents kidnapped a Kuwait-based Austrian 
contract worker, who was accompanying a food convoy on its 
way to the Iraqi city of Nassiriya. 
 
Sanctuary Assessment/Terrorist Groups 
------------------------------------- 
 
¶12.  Austria is not a known sanctuary for terrorist groups. 
The BVT closely monitors the movements in Austria of 
individuals they suspect of having terrorist connections. 
The BVT stepped up surveillance on a number of suspected 
Islamic extremists, following the July 2005 terrorist attacks 
in London.  Such suspects mostly adhere to the radical views 
of terrorist organizations in Egypt, Iraq, Pakistan, and 
Turkey.  In 2006, the BVT continued to monitor four radical 
imams.  However, Austrian authorities maintain that 
radicalized Muslims do not pose an immediate security threat 
in Austria and assess their threat potential as low compared 
to other groups in Europe.  Austria's official Muslim 
community has condemned terrorist attacks in Europe and 
continues to support ongoing inter-religious dialogue in 
Austria. 
 
¶13.  In 2005, Austria introduced stricter immigration laws to 
strengthen enforcement of the 2003 Dublin Convention.  This 
discourages "asylum shopping" and allows the government to 
return serial asylum seekers to the EU country where they 
first applied for asylum.  The new law includes tighter 
counterterrorism measures against foreign visa holders, who 
are suspected of having terrorist links, of sympathizing with 
terrorist acts, or engaging in extremist preaching or 
incitement.  During the first half of 2006, Austrian Interior 
Minister Liese Prokop confirmed that the number of asylum 
applicants dropped 32 percent as a result of the new law. 
Meanwhile, authorities have noted an increase in applicants 
attempting to conceal their transit routes through the EU. 
 
¶14.  In Spring 2006, the BVT responded to press allegations 
that it failed to arrest a key suspect in the 2004 Madrid 
terrorist bombings, who attempted to enter Austria in April 
¶2004.  The BVT clarified that Austrian border police 
questioned Abdelmajid Bouchard of Morocco after he illegally 
tried to enter Austria from Hungary.  The border police 
subsequently deported him to Hungary because there was no 
international arrest warrant for him at that time. 
 
¶15.  There were few violent incidents this year in Austria 
and the authorities attributed most of the incidents to 
individuals with right wing, xenophobic, or anti-American 
tendencies.  These resulted in minor property damage, but no 
 
VIENNA 00003584  003 OF 006 
 
 
causalities.  In June, police discovered four fake bombs in 
Vienna's first district prior to the visit by President Bush. 
 
Domestic Counterterrorism Actions 
--------------------------------- 
 
¶16.  In 2005, Austria introduced a legislative package that 
earmarked 105 million euros for terrorism prevention measures 
and research through the year 2013.  It allocated twelve 
million euros for 2006. 
 
¶17.  In March 2006, Austria amended its export control 
legislation to further restrict transfers of chemicals, 
software, and weapons, and to prevent these sensitive 
dual-use goods from falling into the terrorist hands.  This 
action further harmonizes Austrian law with EU and 
multilateral export control regimes. 
 
¶18.  During 2005 and the first half of 2006, the Interior 
Ministry investigated 921 suspected cases of nonproliferation 
and stopped nine shipments of dual-use goods that were 
destined for Iran, Saudi Arabia, Pakistan, and North Korea. 
This included a friction-testing device for Iran that was 
disguised as a pharmaceutical shipment.  In December 2006, 
according to press reports, Austrian authorities were 
investigating the Graz-based firm Daniel Frosch Export (DFE) 
on allegations that it delivered accelerators, capacitors, 
and condensers to Iran's nuclear program. 
 
¶19.  In August, an Austrian news magazine reported that the 
Interior Ministry's Threat Response Center dissolved a 
Vienna-based Islamic terror cell in December 2005.  The cell 
reportedly consisted of five Pakistani men with Austrian 
citizenship.  Reports alleged that they had connections to 
the terrorists responsible for the failed 2006 attacks in 
London. 
 
¶20.  October 2006, an Austrian administrative court rejected 
an appeal by convicted terrorist Mohammed Abdul (a.k.a. Adel 
Sayed Mohammed Abdel) of Egypt to renew his asylum status. 
Authorities in Egypt believe Abdul has ties to the Al-Qa'ida 
leadership.  An Egyptian military tribunal twice convicted 
and sentenced him, in absentia, to death for terrorist 
activities.  Abdul's status in Austria, however, remains 
unclear.  Austria subscribes to the Geneva Human Rights 
Convention and is unlikely to deport Abdul to Egypt or to any 
country with the death penalty. 
 
Efforts Against Terrorist Financing and Money Laundering 
--------------------------------------------- ----------- 
 
¶21.  Disrupting terrorist financing is an integral part of 
Austria's counterterrorism strategy.  Austria has a 
comprehensive legal framework in place -- in the Austrian 
Code of Criminal Procedure, Associations Act, Banking Act, 
and Customs Law -- to combat money laundering and terrorism 
financing.  Austria is a member of the Financial Action Task 
Force Against Money Laundering (FATF), and has implemented 
and achieved a good level of copliance with all of FATF's 
nine Special Recommenations.  These measures require 
financial institutions and related professionals (e.g. 
lawyers, notaries, real estate agents, accountants, casino 
owners, etc.) to disclose uspicious financial transactions 
and overseas trnsfers of financial payments.  Austria 
requires all financial transfer and foreign exchange 
busineses to obtain a license from the Financial Market 
Authority, and has outlawed hawala banking. 
 
22  Austria closely follows EU policies to fight terorist 
financing.  Austria actively participates i the EU 
Clearinghouse mechanism, which designate terrorist 
financiers under UNSCR 1373.  During 2006, Austria fulfilled 
its obligations to freeze assets, pursuant to UNSC 
resolutions and EU Clearinghouse designations, but did not 
initiate any freezing actions independently.  In 2006, the 
government began to implement the EU Third Money Laundering 
Directive, which will make changes to several laws to further 
tighten disclosure requirements on entities that are involved 
in financial transactions. 
 
¶23.  In May 2006, Austria signed the Council of Europe 
Convention on the Prevention of Terrorism (ETS No. 196) and 
the Convention on Laundering, Search, Seizure, and 
Confiscation for the Proceeds from Crime and on the Financing 
of Terrorism (ETS No. 198).  The government is working on 
ratifying these agreements as well as the amended Convention 
on the Suppression of Terrorism (ETS No. 190), which Austria 
signed in May 2003. 
 
 
VIENNA 00003584  004 OF 006 
 
 
¶24.  In 2004, the Austrian Financial Intelligence Unit and 
the BVT received 24 reports of suspected terrorist financing 
transactions.  These did not result in any convictions. 
Figures for 2005 and 2006 are not yet available. 
 
¶25.  In 2004, according to the most recent statistics, money 
laundering investigators in Austria received over 1,500 
reports and subsequently reported criminal offenses to the 
police in 147 cases.  Austria also froze accounts worth 27.9 
million euros in 2004, according to press reporting, because 
of money laundering suspicions.  Money laundering in Austria 
has connections primarily to fraud and to other criminal 
activity, such as drug smuggling and human trafficking. 
 
¶26.  In April, the Austrian EU Presidency hosted a joint 
EU-Gulf countries cooperation seminar in Brussels on 
Combating Terrorist Financing.  Some 100 participants 
attended from the EU, U.S., Bahrain, Kuwait, UAE, Oman, 
Qatar, and Saudi Arabia.  The agenda focused on strengthening 
international cooperation among financial intelligence units, 
non-profit organizations, and formal and informal banking 
systems. 
 
¶27.  In June, Austria hosted a U.S.-EU workshop on terrorist 
financing.  Approximately 120 representatives from the U.S., 
EU member state governments, and the private financial sector 
participated in the conference.  The meeting focused on 
identifying best practices for ensuring private sector 
compliance with financial sanctions.  Austria identified two 
issues at the conference for future action: the need to 
establish a private sector advisory group in connection with 
the UN, and the need to establish best practice guidelines 
for government officials, who work on sanctions 
implementation. 
 
International Cooperation 
------------------------- 
 
¶28.  Austria continued to make modest, but important 
contributions to stability in the Middle East and 
Afghanistan.  In 2006, Austria maintained three instructors 
to train Iraqi police at the International Police Training 
Center in Jordan.  Austria has 380 UNDOF peacekeepers in the 
Golan Heights and seven UNTSO/UNIFIL observers working out of 
Jerusalem.  Four Austrian liaison officers currently serve in 
the International Security Assistance Force (ISAF) 
headquarters in Kabul. 
 
¶29.  Austria continued efforts to intensify international 
police cooperation within the "Salzburg Forum," a recurring 
meeting of regional Interior Ministers from Austria, the 
Czech Republic, Slovakia, Poland, Hungary, and Italy. 
Austria further maintained its lead role in the EU Central 
Asian Border Security Initiative (CABSI) and in the Vienna 
Initiative on Central Asia (VICA) project.  These programs 
provide funding, equipment, and technical expertise to 
strengthen border security and reduce trafficking of illicit 
goods in Central Asia. 
 
¶30.  In December 2006, Austria finalized the Treaty of Pruem 
(also dubbed "Schengen III") and was one of the first EU 
countries to grant access to its police database to the six 
other EU countries that are party to the Treaty.  The 
signatories hope that access to this information, which 
includes DNA, fingerprints, and vehicle data, will help 
identify terrorism suspects. 
 
¶31.  Achieving peace and stability in the Western Balkans is 
a continuing, key goal of Austria's foreign policy.  At the 
end of 2006, Austria maintained 579 peacekeepers in Kosovo 
(KFOR).  An additional 30 Austrian police officers operated 
in the area under UNMIK.  Austria has 311 troops in Bosnia 
(EUFOR).  In June, Austria convened a three-day workshop of 
experts from Europe, the Western Balkans, Russia, the United 
Nations Office of Drugs and Crime (UNODC), and the U.S. to 
discuss strategies for fighting drug trafficking along the 
Balkan route. 
 
¶32.  In May, Austria participated in Operation Combined 
Endeavor, an annual multilateral military exercise that the 
U.S. European Command sponsors.  The exercise focused on 
achieving C4 (command, control, communications, and 
computers) interoperability among nations. 
 
¶33.  Austria participates in all major non-proliferation 
regimes, including the Australia Group, the Wassenaar 
Arrangement (with headquarters in Vienna), and the Missile 
Technology Control Regime (MTCR).  Vienna is the seat of the 
United Nations Office on Drugs and Crime (UNODC) and is a 
 
VIENNA 00003584  005 OF 006 
 
 
"major donor" to the UNODC, with an annual pledge of 
approximately $500,000. 
 
Cooperation with the U.S. 
------------------------- 
 
¶34.  Austria hosted several high-profile meetings on 
counterterrorism with senior U.S. officials during its EU 
Presidency.  In May, Austria hosted U.S. Attorney General 
Alberto Gonzales and Department of Homeland Security Deputy 
Secretary Michael P. Jackson at a meeting of Justice and 
 
SIPDIS 
Interior Ministers from the EU and Russia.  In May, Austria 
also co-chaired the biannual U.S.-EU dialogue on 
counterterrorism (COTER), where it presented a media 
communications strategy to counter terrorist radicalization 
and recruitment.  In June, President Bush, Secretary of State 
Condoleezza Rice, and other senior U.S. officials visited 
Vienna for the U.S.-EU Summit.  Central themes of the Summit 
included securing international borders, developing biometric 
standards, and preventing WMD proliferation, terrorist 
financing, and radicalization and recruitment. 
 
¶35.  Austrian authorities continue to react quickly and 
competently to U.S. requests for protection of U.S. 
facilities and personnel in the country.  The Regional 
Security Office (RSO) enjoys a strong working relationship 
with Austrian police intelligence units concerning potential 
terrorist threats against USG personnel and facilities in 
Austria.  The degree of support and assistance that the 
Austrian authorities provided during the visits of President 
Bush and Secretary of State Rice in June 2006 reinforced the 
strength of this relationship.  RSO also has a functional 
liaison with the Nuclear, Biological, and Chemical Defense 
Unit of the Austrian Army for timely support in the event of 
a nuclear, chemical, or biological attack on Embassy 
facilities.  Austrian authorities routinely provide 
appropriate and quick security support in connection with 
anti-U.S. demonstrations near the embassy.  In 2006, 
demonstrators near the Embassy mainly protested the war in 
Iraq, allegations of torture in U.S. military prisons, and 
globalization. 
 
¶36.  Post's Legal Attach Office (Legat) has an excellent 
working relationship with its Austrian counterparts and 
continues to nominate and facilitate training for Austrian 
officials at the FBI National Academy.  In February 2006, the 
director of Austria's Federal Criminal Office (BKA) met with 
FBI officers in Washington, San Diego, and New York to 
discuss counterterrorism, homeland security, and 
transnational organized crime. In April, the Legat hosted a 
terrorist finance seminar in Budapest for EU law enforcement 
services, including the Austrian BVT.  In October, Austria's 
Deputy Director for National Security attended a two-week 
leadership course at the FBI. 
 
¶37.  The DHS/ICE office in Vienna also continues to work 
closely with Austrian law enforcement authorities on joint 
investigations, including in the areas of money laundering 
and preventing the transfer of WMD and licensable technology 
through the region.  With direct flights between Vienna and 
the United States, the ICE office works with Austrian border 
control officials on passport and identity fraud issues on 
almost a daily basis. 
 
¶38.  Austria's view toward the HSPD-6 Initiative regarding 
the exchange of terrorist screening data remains positive. 
Talks with the U.S. progressed this year on concluding a 
Memorandum of Understanding (MOU).  In November 2006, a team 
from the Department of State and the Department of Homeland 
Security's Terrorist Screening Center visited the Ministry of 
Interior to discuss the proposed MOU.  Austria prefers a 
simple agreement that would not be legally binding or require 
Parliamentary approval.  Data protection is another concern, 
especially regarding information sharing with third 
countries.  Austrian officials fear that a new agreement will 
jeopardize the level of good cooperation that already exists 
with the U.S. for sharing this information. 
 
¶39.  Sharing passenger name record (PNR) data has 
traditionally been a sensitive issue for Austria because of 
data privacy concerns.  Austria reluctantly supports the EU's 
draft PNR agreement, but does not actively advocate 
broadening its scope. 
 
¶40.  In February, Austria pledged to implement the EU 
directive on telecommunications data retention.  However, 
Austria extended the implementation period to 36 months to 
allow small internet providers time to make the necessary 
technical changes. 
 
VIENNA 00003584  006 OF 006 
 
 
 
Renditions Allegations 
---------------------- 
 
¶41.  In November 2006, a report by the EU Parliament on 
suspected U.S. renditions in Europe criticized Austria for 
not cooperating with its investigation into the possible 
kidnappings of an Egyptian physician in 2002, and an East 
African computer specialist in early 2003.  Both were 
long-term residents of Austria.  The report alleges that U.S. 
authorities abducted the men.  Under scrutiny from the media 
throughout 2006, the Austrian foreign ministry stressed that 
it repeatedly addressed the issue of renditions with the 
U.S., including during the June 2006 U.S.-EU Summit in 
Vienna.  Austria supports the EU position that international 
law and human rights standards must be respected and that 
illegal renditions are unacceptable.  During the Summit, 
Austria also called on the U.S. to close the Guantanamo 
military prison. 
 
The Road Ahead 
-------------- 
 
¶42.  The U.S. will continue to support Austrian 
counterterrorism efforts, deepen law enforcement cooperation, 
and promote a better understanding of U.S. counterterrorism 
policy in Austria.  Facilitating meetings of U.S. and 
Austrian authorities and sponsoring public speaking events on 
counterterrorism-related topics remain top priorities.  Post 
will continue the successful trend of working with Austrian 
law enforcement officials to prevent the transfer of 
armaments and of sensitive dual-use technologies through the 
region. 
MCCAW