In a Nov. 23, 2015 letter to the Department of Treasury, the Charity & Security Network (C&SN)noting the need for “ongoing engagement between the U.S. government and the NPO sector to ensure that measures intended to protect the sector from abuse by terrorist organizations are effective, risk-based, proportionate and not unduly disruptive of the activities of NPOs. “  To achieve this goal C&SN asked that Treasury open the decade-old Antiterrorist Financing Voluntary Best Practices for NPOs and the Risk Matrix for updating and revision, with input from the nonprofit sector.  The letter also asked that Treasury meet with nonprofits to discuss its June 2015 National Terrorist Financing Risk Assessment and ongoing proceedings at the Financial Action Task Force that relate to nonprofits.  Treasury responded that it plans to engage the sector on these issues, but provided no details.

The specific requests in the letter are that Treasury:

  • Meet with the NPO sector to discuss revision of FATF’s Interpretive Note for Recommendation 8 (NPOs) prior to FATF’s February 2016 plenary;

  • Engage in dialog with the NPO sector about the June 2015 National Terrorist Financing Risk Assessment and what it means for the future;

  • Open the decade-old Antiterrorist Financing Voluntary Best Practices for NPOs and the Risk Matrix for updating and revision;

  • Coordinate a meeting with the FATF mutual evaluation team and the NPO sector when the site visit takes place in early 2016; and

  • Provide the NPO sector with a copy of Treasury’s Technical Compliance submission for the FATF mutual evaluation of the U.S.

Treasury often cites the Antiterrorist Financing Voluntary Best Practices for NPOs and the Risk Matrix to demonstrate that it has engaged the nonprofit sector on anti-terrorist financing issues. However, the sector has been critical of these documents and consistently asked that they be revised. Treasury has declined to do so. Now, however, given the evolving nature of the terrorist threat and the ever-more sophisticated risk mitigation measures taken by the nonprofit sector, the timing for opening up these documents for update and revision is ripe.  Added to this, the FATF is currently conducting an evaluation of U.S. implementation of its standards, including its Recommendation 8 on protecting the nonprofit sector from abuse by terrorists.

This evaluation, along with FATF’s move to revise key documents relevant to Recommendation 8, also require opportunities for the nonprofit sector to have input into the process.  C&SN will continue working to ensure this dialog takes place.