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 R8and 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.
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 Guidance on Correspondent Banking Services (October 2016)
FATF Recommendations & Interpretive Notes (Updated June 2016)
Consolidated FATF Strategy on Combatting Terrorist Financing (February 2016)
Global Coalition Resources
Infographic: The ABCs of FATF: What Nonprofits Need to Know (October 2018)
Handout: The ABCs of Risk Assessment for the Nonprofit Sector in Your Country (October 2018)