Financial Action Task Force (FATF) Overview

February 11, 2013

The Financial Action Task Force (FATF) is an intergovernmental policy-making body that sets anti-terrorist financing and anti-money laundering standards. These standards are used to assess the adequacy of laws and regulations in nearly every country in the world. Since 9/11, FATF has increased its focus on regulation of financial services and charities. In doing so, it created Recommendation 8 (R8) on laws relating to non-profit organizations. This measure has created negative consequences for charitable and development programs, and has impacted civil society operations and access to financial resources to support nonprofit work. Although FATF has taken positive steps since 2012 to prevent abuse or misapplication of its program, more needs to be done to ensure that anti-terrorist financing laws cut the flow of money to terrorists, not to civil society. CSOs must pay close attention to the workings of FATF to prevent new laws that impede their work. 

Fact Sheet - FATF: What Nonprofits Need to Know

 

Global NPO Coalition on FATF

Since 2012, the Transnational NPO Working Group on FATF has helped civil society raise its voicewith FATF at the national level. It has coordinated responses to draft revisions of FATF's Best Practices Paper and Typology Report, as well as working to develop a formal consultation process with FATF. More recently, it has worked for changes in R8 and its accompanying Interpretive Note (see p. 54). 

JOIN the Global NPO Coalition on FATF

The Global Coalition also facilitates the Civil Society-FATF Platform. This helpful resource contains news, background and other information about FATF to ensure that civil society is effectively engaged in the Working Group's activities. 

 

FATF News
2017

2016

2015

FATF Background

Key FATF Documents

Relevant Reports

 
FATF Archives

2014

2013

2012

 

See related issues: Anti-Terrorism Financing and Financial Access

 

Two New Reports Laud Work of Global NPO Coalition on FATF

The Global NPO Coalition on FATF, co-chaired by the Charity & Security Network, plays an important rule in ensuring that recommendations for country-level counter-terrorism finance policies respect human rights and the important role of civil society. Two new reports praise the coalition's work. 

Financial Action Task Force (FATF) Recommendation 8 and FATF recommendations following evaluations add to the restrictions faced by civil society organizations, according to a new report from Bread for the World, The Impact of International Counterterrorism on Civil Society Organisations: Understanding the Role of the Financial Action Task Force. Asserting that the links between measures that fight the financing of terrorism and civic space are not known widely, the report explains the role of FATF in setting international standards that affect the way in which civil society organisations are regulated by nation-states, their access to financial services, and their obligations to avoid proscribed organisations and other groups deemed to pose a terrorism risk. The report summarizes the Global Coalition's achievements to date in its Annex. Read more about this report.

A report from UN Special Rapporteur Maina Kiai, Imagining a World without Participation: Mapping the Achievements of Civil Society, notes that the Global Coalition has "progressively made gains in voicing concerns around the adverse effects on non-profit organisations of international policies against counter-terrorism and money laundering." 

Report Examines Impact of FATF on Civil Society

Date: 
May 23, 2017

Financial Action Task Force (FATF) Recommendation 8 and FATF recommendations following evaluations add to the restrictions faced by civil society organizations, according to a new report from Bread for the World, The Impact of International Counterterrorism on Civil Society Organisations: Understanding the Role of the Financial Action Task Force

Asserting that the links between measures that fight the financing of terrorism and civic space are not known widely, the report aims to "inform civil society organisations and non-profit organisations (NPOs), but also political decision makers who are not familiar with anti-terrorism measures." Specifically, it explains the role of FATF in setting international standards that affect the way in which civil society organisations are regulated by nation-states, their access to financial services, and their obligations to avoid proscribed organisations and other groups deemed to pose a terrorism risk. 

C&SN, Partners Secure Seats on FATF’s Private Consultative Forum

Date: 
March 1, 2017

In February 2017, the Global NPO Coalition on FATF, learned that it will for the first time have seats on the Financial Action Task Force’s (FATF) Private Consultative Forum (PCF). The PCF is an annual meeting, hosted by FATF, in which it discusses issues affecting nongovernmental entities subject to anti-money laundering and counter-terrorism financing obligations.

Webinar Recording Now Available

The ABCs of FATF: What Nonprofits Need to Know in 2017 and Beyond

Recording Now Available:  https://youtu.be/0ShlZHrTF-g

 
new international standard for government regulation of nonprofit organizations (NPOs) was published by the Financial Action Task Force (FATF) in June. It is changing the way governments are supposed to approach regulation of NPOs to prevent terrorist abuse.
The Global NPO Coalition on FATF successfully advocated for this new standard. In this webinar, you can learn more about FATF and what the new standard (Recommendation 8) may mean for NPOs in your country.
 
AGENDA:
1. The ABCs of FATF: its purpose, why NPOs need to know about it
2. FATF's Recommendation 8 - the new standard and Interpretive Note
3. Country level implementation of the new R8, including the national risk assessment
4. FATF Mutual Evaluations - what they mean for NPOs in your country
5. How NPOs can get more information, get involved
 

Report Summarizes Outcomes of Multi-Stakeholder Meeting on FATF's Evaluation Process

Date: 
December 6, 2016

A new report, Enhancing Effective Implementation of FATF Standards on Nonprofits: Lessons learnt from mutual evaluation processes, summarizes the main discussion points and recommendations from a September 2016 a meeting with representatives of governments, nonprofit organizations and Financial Action Task Force Secretariat staff.

FATF Releases New Evaluation of US

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. 

For a  summary and analysis that identifies the major issues relevant to NPOs click here

FATF Releases New Evaluation of U.S. - Nonprofit Recommendation Addressed

Date: 
December 2, 2016
Author: 

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). Key comments are below.

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