Recommendation number 8 pertains specifically to non profit organisations. It states that:
Countries should review the adequacy of laws and regulations that relate to non–profit organisations which the country has identified as being vulnerable to terrorist financing abuse. Countries should apply focused and proportionate measures, in line with the risk–based approach, to such non-profit organisations to protect them from terrorist financing abuse, including:
(a) by terrorist organisations posing as legitimate entities;
(b) by exploiting legitimate entities as conduits for terrorist financing, including for the purpose of escaping asset-freezing measures; and
(c) by concealing or obscuring the clandestine diversion of funds intended for legitimate purposes to terrorist organisations.
(International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation: The FATF Recommendations. Paris: FATF/OECD, February 2012, Updated October 2016. p.13.)
Recommendation 8 and its Interpretative Note require countries to review:
- the activities, size and other relevant features of their NPO sector, and
- the adequacy of applicable laws and regulations.
Recommendation 8 and its Interpretive Note also require countries to;
- apply a risk–based, focused and proportionate approach to the NPO sector, and not disrupt legitimate charitable activity
- reach out to NPOs in a sustained manner
- effectively gather information and identify the subset of NPOs which falls under the FATF definition
- undertake investigations where abuse is suspected, and co-ordinate internationally.
(International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation: The FATF Recommendations. Paris: FATF/OECD, February 2012, Updated October 2016. pp.54-59.)