FATF Incorporates Nonprofits Recommendations into 2013 Update of Best Practices Paper

June 26, 2013

The Financial Action Task Force (FATF) released a “limited update” of its Best Practices paper (BPP) for governments to “combat the abuse of nonprofit organizations” (NPOs) by terrorists on June 25, 2013 that incorporates suggestions provided by a civil society working group.  The document is a “limited update to reflect the…need to protect NPOs’ legitimate activities.”  In a letter to participants in a FATF consultation with civil so ciety, FATF President Bjorn Aamo said, “It is without doubt that the work of the FATF on this paper has benefitted extensively from the April 2013 Consultation meeting and the written comments that we received from the NPO sector after the Consultation meeting.  The next step will be typologies research to gain a better understanding of the vulnerabilities and risks currently facing NPOs.” After that research is complete the specifics of the Best Practices Paper will be updated.  The Transnational Civil Society Working Group on FATF will continue to provide input and engage in dialog with FATF on these issues. 

Updated International Anti-Terrorist Financing Standards Problematic for Nonprofits

March 20, 2012

On Feb. 15, the Financial Action Task Force (FATF) approved revised recommendations that largely duplicate the problematic Special Recommendation VIII for the nonprofit sector, focusing more on weapons of mass destruction, corruption and tax crimes. Published the same month, a report from the Transnational Institute and Statewatch, notes that the regulatory measures FATF recommends for nonprofits can and are being used by repressive governments to suppress nonprofits. The FATF is an international consortium of 36 countries that sets anti-terrorist financing and anti-money laundering standards used by 180 countries.