The Charity Commission
The Charity Commission is issuing an alert to charities to draw their attention to the Financial Action Task Forces public consultation to consider amendments and updates to its Interpretative Note for Recommendation 8 focused on non-profit organisations and the risk of terrorist abuse.
The Financial Action Task Force (FATF) is the global standard setting body for anti-money laundering and counter terrorist financing. FATF has developed a series of recommendations for countries to implement. Collectively these represent the global standard that every country is expected to meet.
FATF Recommendation 8 (R8) focuses on non-profit organisations (NPOs) and the implementation of measures so that they cannot be abused for the financing of terrorism. The Interpretative Note to R8 sets out the approach countries should take in implementing those measures. Over the last few years work has been undertaken by the FATF to produce and publish a typologies report about the risk to the NPO sector and to update the Best Practices paper on Combating the Abuse of Non-Profit Organisations. As a result of the typologies report and Best Practice Paper the FATF is seeking to update the Interpretive Note to R8 to align it with the approach and findings in these documents
The FATF consultation will consider amendments and updates on the Interpretive Note to R8. The consultation closes on Friday 27 November, 6:00pm, all responses should be sent to FATF.NPOconsultation@fatf-gafi.org. Details about how to submit a contribution can be found on the FATF consultation website.
The commission considers that charities which work internationally to provide services or which fund overseas partners to do so - particularly in conflict zones or in close proximity to terrorist groups - will find this consultation of particular interest.