Financial Action Task Force (FATF) Overview
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
- FATF Adopts Guidance on Bank Customer Due Diligence
- Charity & Security Network Submits Comments on Saudi Arabia's Treatment of NPOs for FATF Evaluation
- C&SN, Partners Secure Seats on FATF's Private Consultative Forum
2016
- Nonprofit Organizations No Longer 'Particularly Vulnerable,' Says FATF
- FATF Updates Evaluation Criteria to Match Revised Recommendation 8
- Revision of FATF Recommendation 8 Applauded by NPO Sector
- FATF Issues Guidance on Correspondent Banking Services
- No, the FATF Doesn't Require That
- Global NPO Coalition on FATF Submits Proposed Revisions to Recommendation 8
- Article Highlights Civil Society Advocacy Around FATF
- Special Rapporteur Calls on FATF to Consider Civil Society's Role in Counterterrorism
- Over 100 Nonprofits Ask FATF to Revise Recommendation 8
2015
- Improvements Needed in Upcoming FATF Evaluation of U.S.
- FATF Best Practices Paper Revision is a Victory for NPO Sector
- Nonprofits Urge FATF To Develop a Formal Consultation Process
- Global NPO Response to FATF's Call for Comments on Best Practices Paper Revisions
- CSN Essay on FATF in State of Civil Society Report 2015
- FATF Agrees to Formal Consultation Process
- Global Coalition Submits Comments to FAT on R8's Interpretive Note
FATF Background
- Case Study: U.S. Nonprofit Organizations and the FATF Mutual Evaluation Process 2015-16
- Barriers to Cross-Border Nonprofit Operations and the Role of the Financial Action Task Force
- The Financial Action Task Force and Human Rights
- Bad Laws:How the FATF Is Used to Justify Laws That Harm Civil Society, Freedom of Association and Expression
- A Section-by-Section Summary of the 2015 BPP
- Summary of Report: The Impact of FATF Recommendation 8 on Civil Society in Europe and Asia
- Risk Assessment Scoping Paper
Key FATF Documents
- FATF Guidance: Private Sector Information Sharing (November 2017)
- FATF Guidance: Anti-Money Laundering and Terrorist Financing Measuresand Financial Inclusion with a Supplement on Customer Due Diligence (Updated November 2017)
- FATF Releases New Evaluation of US
- FATF's 2016 Evaluation of the U.S. - Summary and Analysis
- FATF Methodology for Assessing Technical Compliance with teh FATF Recommendations and the Effectiveness of AML/CFT Systems (Updated October 2016)
- FATF Guidance on Correspondent Banking Services (October 2016)
- FATF Recommendations & Interpretive Notes (Updated June 2016)
- Consolidated FATF Strategy on Combatting Terrorist Financing (February 2016)
-
Emerging Terrorist Financing Risks (October 2015)
- "Best Practices" Paper (BPP) for Combating the Abuse of Non-Profit Organisations (June 2015)
- FATF Clarifies Risk-Based Approach: Case-by-Case, Not Wholesale De-risking (October 2014)
- FATF Typology Report: Risk of Terrorist Abuse in Non-Profit Organisations (June 2014)
- FATF Guidance for Complying with UN's Targeted Sanctions Regime (June 2013)
- FATF Guidance on National Money Laundering and Terrorist Financing Risk Assessment (February 2013)
- AML/CFT Evaluations and Assessments Handbook for countries and assessors (April 2009)
- Typologies report on terrorist financing (2014)
Resources
- Webinar - The ABCs for Risk Assessment of the Nonprofit Sector in Your Country (2018)
- Webinar - The ABCs of FATF: What Nonprofits Need to Know in 2017 and Beyond (2017)
- Webinar - Nonprofits No Longer 'Particularly Vulnerable': What's Next? (2016)
- Webinar - The Financial Action Task Force: What Nonprofits Need to Know (2015)
- Bread for the World: The Impact of International Counterterrorism on Civil Society Organisations: Understanding the Role of the Financial Action Task Force.
- Center on Law and Globalization: FATF Doesn't Do Enough to Evaluate Effectiveness, Monitor Potential Harms (2014)
- Statewatch & Human Security Collective: Countering terrorism or constraining civil society? The impact of Financial Action Task Force recommendations on non-profit organisationsin Central and Eastern Europe and Central Asia
- Statewatch & Transnational Institute: Counter-terrorism, Policy Laundering and the FATF: Legalising Surveillance, Regulating Civil Society (2012)
- Spaces for Change: Closing Spaces for Civil Societyand Democratic Engagement in Nigeria - Part A: Beyond FATF: Trends, Risks and Restrictive Regulation of Non-Profit Organisations in Nigeria
- Chatham House, Humanitarian Action and Non-state Armed Groups: The Impact of Banking Restrictions on UK NGOs
- Two New Reports Laud Work of Global NPO Coalition on FATF
- Report Summarizes Outcomes of Multi-Stakeholder Meeting on FATF's Evaluation Process
- Report: The Impact of FATF Recommendation 8 on Civil Society in Europe and Asia (2015)
FATF Archives
2014
- FATF Typology Report Finds Service NGOs Most At Risk of Terrorist Abuse
- Charity & Security Network, Human Security Collective Send Recommendations to the Financial Action Task Force
- Study: FATF Doesn't Do Enought o Evalyuate Effectiveness, Monitor Potential Harms
- UN Releases Report on the Impact of Multilateral Organization on Civil Society, Freedoms, Citing FATF
2013
- Obama Hosts Panel on Supporting Civil Society
- FATF Releases Guidance for Complying With UN's Targeted Sanctions Regime
- FATF Holds First Consultation with Civil Society on Anti-Terror Financing Rules and Protecting Nonprofits
2012
See related issues: Anti-Terrorism Financing and Financial Access