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).
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.
- Nonprofit Organizations No Longer 'Particularly Vulnerable,' Says FATF
- FATF Updates Evaluation Criteria to Match Revised Recommendation 8
- FATF Releases New Evaluation of US
- FATF Best Practices Paper Revision is a Victory for NPO Sector
- FATF Agrees to Formal Consultation Process
- Barriers to Cross-Border Nonprofit Operations and the Role of the Financial Action Task Force
- A Section-by-Section Summary of the 2015 BPP
- FATF Releases Guidance for Complying With UN's Targeted Sanctions Regime
Links to Key FATF Documents
- FATF Guidance: Anti-Money Laundering and Terrorist Financing Measuresand Financial Inclusion with a Supplement on Customer Due Diligence (Updated November 2017)
- FATF Methodology for Assessing Technical Compliance with the 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)
- 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)