Financial inclusion and non-profit organisations

Protecting non-profits from abuse for terrorist financing through the risk-based implementation of revised FATF Recommendation 8

16 Nov 2023

The Financial Action Task Force today released amendments to Recommendation 8 and its Interpretive Note to address the misapplication and misinterpretation of Recommendation 8, that had led countries to apply disproportionate measures on Non-Profit Organisations (NPOs).

The FATF Recommendations

16 Nov 2023

The FATF Recommendations are the basis on which all countries should meet the shared objective of tackling money laundering, terrorist financing and the financing of proliferation. The FATF calls upon all countries to effectively implement these measures in their national systems.

Best Practices on Combating the Abuse of Non-Profit Organisations

16 Nov 2023

The FATF has updated its Best Practices to reflect the amendments to Recommendation 8 and to help countries, the non-profit sector and financial institutions understand how best to protect relevant NPOs from abuse for terrorist financing, without unduly disrupting or discouraging legitimate NPO activities.

Related publications

  • 16 Nov 2023

    Protecting non-profits from abuse for terrorist financing through the risk-based implementation of revised FATF Recommendation 8 The Financial Action Task Force today released amendments to Recommendation 8 and its Interpretive Note to address the misapplication and misinterpretation of Recommendation 8, that had led countries to apply disproportionate measures on Non-Profit Organisations (NPOs).
  • 16 Nov 2023

    Best Practices on Combating the Abuse of Non-Profit Organisations The FATF has updated its Best Practices to reflect the amendments to Recommendation 8 and to help countries, the non-profit sector and financial institutions understand how best to protect relevant NPOs from abuse for terrorist financing, without unduly disrupting or discouraging legitimate NPO activities.
  • 29 Jun 2023

    Public Consultation on the Revision of Recommendation 8 and its Interpretive Note The Financial Action Task Force (FATF) is considering proposals for draft amendment text to Recommendation 8 of the FATF Standards and its Interpretive Note (R.8/INR.8), which aims to protect NPOs from potential terrorist financing abuse.
  • 29 Jun 2023

    Public Consultation on the FATF Best Practice Paper to Combat the Abuse of Non Profit Organisations The Financial Action Task Force (FATF) is considering proposals for the update of the FATF Best Practice Paper to Combat the Abuse of NPOs. This project is being undertaken in parallel to the proposed amendments to Recommendation 8 and its Interpretive Note (also under public consultation) to better clarify the implementation of a risk-based approach.
  • 27 Oct 2021

    Mitigating the Unintended Consequences of the FATF Standards The FATF launched a project to study and mitigate the unintended consequences resulting from the incorrect implementation of the FATF Standards. At its October 2021 meeting, the Financial Action Task Force FATF Plenary agreed to publish a High Level Synopsis of this Stocktake.
  • 4 May 2020

    COVID-19-related Money Laundering and Terrorist Financing Risks and Policy Responses The COVID-19 pandemic has led to unprecedented global challenges, human suffering and economic disruption and an increase in COVID-19-related crimes. This paper identifies challenges, good practices and policy responses to new money laundering and terrorist financing threats and vulnerabilities arising from the COVID-19 crisis.
  • 3 Nov 2017

    FATF Guidance on AML/CFT measures and financial inclusion, with a supplement on customer due diligence This FATF Guidance aims to provide support in designing Anti-Money Laundering and Terrorist Financing (AML/CFT) measures that meet the goal of financial inclusion, without compromising the measures that exist for the purpose of combating crime. The revised Guidance, reflects the changes made to the FATF Recommendations in 2012 and focuses in particular on the reinforcement of the risk-based approach (RBA), as a general and underlying principle of all AML/CFT systems.
  • 21 Oct 2016

    Guidance on Correspondent Banking This guidance explains the FATF’s requirements in the context of correspondent banking services to manage, rather than avoid, the money laundering and terrorist financing risks associated with these business relationships.
  • 22 Apr 2016

    Public Consultation on the Revision of Recommendation 8 Non-profit organisations FATF is undertaking a focused and limited revision of the FATF Standard on non-profit organisations Recommendation 8. FATF welcomes the views and specific proposals from the public, and in particular the non-profit sector no later than 29 April 2016.
  • 5 Nov 2015

    Public Consultation on the Revision of the Interpretive Note to Recommendation 8 Non-profit organisations The FATF welcomes views from the public, and in particular the non-profit sector, on work it is currently undertaking to rationalise the FATF Standard on non-profit organisations NPOs together with the results of the recently published Typologies Report and Best Practices Paper. The FATF is keen to involve the NPO sector in this process in order to ensure that practical knowledge and experience, in particular from service NPOs, can be properly reflected in the Interpretive Note to Recommendation 8.
  • 15 Oct 2014

    The danger of driving both illicit markets and financial exclusion FATF President Roger Wilkins addresses the issue of ‘de-risking’. Applying FATF’s standards to combat money laundering and countering the financing of terrorism, requires financial institutions to carry out a process of customer due diligence. The standards do not require a rigid, blanket application of that requirement, but specifically call for a proper risk analysis: the risk-based approach. When it comes to innovation, regulators need to be flexible, focusing on dealing with threats and dangers but not at the expense of killing off innovation.
  • 6 Oct 2014

    FATF President contributes to global standard-setting bodies' discussion on financial inclusion At the 3rd high-level meeting on financial inclusion and global standard-setting bodies on 2 October 2014, FATF President Roger Wilkins AO reiterated FATF's strong commitment to support financial inclusion goals.
  • 27 Jun 2014

    Risk of terrorist abuse in non-profit organisations Terrorist organisations need funds, material, personnel and public influence to carry out their illegal activities. Non-profit organisations NPO rely on the same capabilities to further their legitimate and good causes. This typologies report examines in detail, how and where NPOs are at risk of terrorist abuse and provides a number of red flag indicators to help all stakeholders identify and investigate possible cases of abuse.
  • 9 Sep 2013

    G8 Public-Private Sector Dialogue on anti-money laundering and countering the financing of terrorism (AML/CFT) As part of the G8 Presidency economic initiative, Her Majesty’s Treasury, the US Department of Treasury and the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), organised the first Sub-Saharan African AML/CFT Public-Private Sector Dialogue. In his remarks at the meeting, FATF President Vladimir Nechaev welcomed this initiative, which reflects the need to enhance engagement with the private sector to achieve cost-effective and efficient AML/CFT regimes. This meeting, which brought together public and private sector officials responsible for AML/CFT and business development in Sub-Saharan Africa, was aimed at facilitating the development and implementation of robust AML/CFT regimes, based on the revised FATF Recommendations, and to overcome the specific challenges met at regional level.
  • 6 Sep 2013

    Anti-money laundering and countering the financing of terrorism in eastern and southern Africa FATF President Vladimir Nechaev encourages eastern and southern African countries to enhance their efforts to address their anti-money laundering and countering the financing of terrorism (AML/CFT) deficiencies. In his comments to the Council of Ministers of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), he invited countries in the region to conduct risk assessment at national level, as a central element for the efficient implementation of the revised FATF AML/CFT requirements.
  • 20 Jun 2013

    Strengthening Financial Integrity through Financial Inclusion Her Majesty Queen Máxima of the Netherlands, in her capacity of United Nations Secretary-General's Special Advocate for Inclusive Finance, delivered a keynote address to the FATF Plenary in Oslo on 20 June.
  • 26 Apr 2013

    Consultation and dialogue with Non-Profit Organisations FATF met with Non-Profit Organisations NPOs on 24 April, the aim of the meeting was to stress the importance of ensuring that FATF Recommendation 8 on NPOs is not being implemented in a manner that disrupts or discourages legitimate charitable activity.
  • 24 Feb 2013

    Revised Guidance on AML/CFT and Financial Inclusion This FATF Guidance aims to provide support in designing Anti-Money Laundering and Terrorist Financing (AML/CFT) measures that meet the goal of financial inclusion, without compromising the measures that exist for the purpose of combating crime. The revised Guidance, reflects the changes made to the FATF Recommendations in 2012 and focuses in particular on the reinforcement of the risk-based approach (RBA), as a general and underlying principle of all AML/CFT systems.
  • 29 Oct 2012

    FATF's focus on financial inclusion: protecting the integrity of the global financial system Giving more people access to the formal financial sector increases the reach and the effectiveness of anti-money laundering and countering the financing of terrorism regimes. FATF President Bjorn S. Aamo renewed FATF’s commitment to financial inclusion at a conference on Promoting Financial Inclusion through Proportionate Standards and Guidance. The main objective of the meeting, organised by the G20 Global Platform for Financial Inclusion, was to share experiences with other global standard-setters Basel Committee on Banking Supervision, the Committee on Payment and Settlement Systems, the International Association of Deposit Insurers, and the International Association of Insurance Supervisors on the progress and challenges faced in engaging on financial inclusion.
  • 29 Feb 2008

    Guidance on Capacity Building for Mutual Evaluations and Implementation of the FATF Standards Within Low Capacity Countries Recognising the particular problems faced by low capacity countries, this Guidance identifies a number of principles, and specific mechanisms and procedures that may be used to ensure effective prioritisation and implementation of the FATF standards on money laundering and terrorist financing.