Recommandations GAFI

Best Practices: Combating the Abuse of Non-Profit Organisations (Recommendation 8)

Charitable fundraising has been used to provide cover for the financing of terrorism.  In certain cases, the organisation itself was a mere sham that existed simply to funnel money to terrorists.  However, in other cases, the abuse of non-profit organisations (NPOs) occurred without the knowledge of donors, or even of members of the management and staff of the organisation itself.  Besides financial support, some non-profit organisations have also provided cover and logistical support for the movement of terrorists and illicit arms.

FATF Recommendation 8 requires that the laws and regulations that govern non-profit organisations be reviewed so that these organisations cannot be abused for the financing of terrorism.  Countries should identify, prevent and combat terrorist misuse of NPOs through a four-pronged approach involving:

  • outreach to the NPO sector concerning terrorist financing issues
  • supervision or monitoring of the NPO sector
  • effective information gathering and investigation, and
  • effective capacity to respond to international requests for information about an NPO of concern

The laws and regulations should not disrupt or discourage legitimate charitable activities. The FATF has established best practices, aimed at preventing misuse of non-profit organisations for the financing of terrorism while, at the same time, respecting legitimate actions of NPOs.

This Best Practices paper was first issued in October 2002, and updated in June 2013. This limited update of the FATF Best Practices Paper on non-profit organisations, brings it into line with the new FATF Recommendations which were adopted in February 2012, and highlights that measures to protect NPOs from misuse should not disrupt or discourage legitimate charitable activities.  This limited update has been realised in cooperation with the NPO sector.