FATF Recommendation 8 Revision: Risk to Charities’ Financial Security Averted

Adam Pickering, international policy manager for Charities Aid Foundation (CAF), explains why a change to financial regulations is so significant for charities.

“… the assumption that charities are somehow innately at risk by a body with huge influence over regulatory policy has arguably led to the entire charitable sector being seen as a high risk by financial institutions.

But now, thanks in large part to the combined influence of charities around the world – both individually and through the Non Profit Platform on the FATF – this blanket assumption of risk has now been removed. R8 now 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 […]’
This change comes along with a string of revisions to accompanying documents which guide the way FATF recommendations are implemented.
….This then is the perfect illustration of why the advocacy of charities is so valuable as the result is policy which not only better defend against terrorist financing but also ensures that charities are able address the causes and symptoms of terror.”
Read the full article here.