Concluding its research into stopping the financing of terrorism, the bipartisan Task Force to Investigate Terrorism Financing of the U.S. House of Representatives's Financial Services Committee has released a report of its findings. Stopping Terror Finance: Securing the U.S. Financial Sector, is the product of 11 hearing over two six-month periods, beginning in April 2015.
The report notes that terrorists obtain some of their funding through charitable organizations, but explains that usually this is carried out through sham charities, rather than any charitable organization recognized by the U.S. government.
The ABCs of FATF: What Nonprofits Need to Know in 2017 and Beyond
Recording Now Available: https://youtu.be/0ShlZHrTF-g
The Financial Action Task Force (FATF) released the results of its Mutual Evaluation of the United States on Dec. 1, 2016, assessing compliance with its 40 anti-terrorist financing and anti-money laundering standards, including Recommendation 8 (R8) on nonprofit organizations (NPOs).
While the evaluation found the U.S. to be “largely compliant” with R8, it noted that R8 was revised in June 2016. The evaluation is based on the prior version. Key elements of the new R8, including the proportionality of rules to risk, were not addressed. However, FATF said, “The revised version will be taken into account during the follow-up process.” Problems NPOs experience with banking services were also discussed.