While states have sought to put in place measures to tackle terrorist financing through multilateral institutional entities such as the FATF, measures such as Recommendation 8 have had unintended consequences for non-profit organisations (NPOs).
The broad requirement to regulate the sector as a whole for greater transparency and accountability has led to:
- increasing surveillance and state regulation
- difficulties in accessing and distributing financial resources for development, conflict resolution and human rights work
- the creation of onerous and restrictive laws, rules and regulations for the sector
- the cutting-back, in general, of civil society space, with Recommendation 8 reinforcing the alreday existing tools in the state tool box to clamp down further on civil society.
For a report on the impact of Financial Action Task Force recommendations on non-profit organisations in Central and Eastern Europe and Central Asia, read ‘Countering Terrorism or Constraining Civil Society?’