NPO Input on Best Practices Paper

A revised Best Practices Paper was approved at the June 2015 FATF plenary. Read more here and here about the influence and input of NPOs on the revised paper, and some of its key elements.

The Best Practices paper of October 2002 was updated in June 2013 after a consultation held in London, UK in 24 April 2013 between 20 non profit organisations (NPOs) and 14 Financial Action Task Force (FATF) member and observer delegations.

The meeting stressed the importance of ensuring that the implementation of FATF Recommendation 8 on NPOs does not disrupt or discourage legitimate charitable activity. Views were exchanged on the vulnerability of the sector and on the importance for government authorities to have an understanding of these vulnerabilities. What was also stressed was how the misinterpretation or poor implementation of the FATF standards can adversely impact legitimate charitable activity. There was a call for clear guidance in order to help countries understand and implement Recommendation 8.

It was agreed that typologies work – categories of the ways in which terrorist abuse of an organisation can occur – would be done to gain a better understanding of NPO vulnerability. Following on from this, a more comprehensive revision of the Best Practices paper would be considered by the FATF.

NPOs have called for not only a further revision of the Best Practices paper, but also a revision of Recommendation 8 itself. In line with this, an Initial NPO Input into FATF Revision of the R8 Best Practices Paper, developed by participants at a meeting in Paris in October 2014, with relevant input from the wider NPO working group was submitted to the FATF in December 2014. The NPO working group leadership had a call with the FATF on 2 February 2015 to discuss the issues and the process.

The draft of the revised Best Practices paper was discussed at the FATF’s plenary meeting (22-27 February 2015). A one-day NPO consultation on the Best Practices Paper with the FATF (limited to NPOs that the FATF invited) took place on 25 March 2015 in Brussels.  NPOs submitted comments on the draft paper in April 2015. A revised Best Practices Paper was approved by the FATF plenary in Brisbane in June 2015.