How can the shift towards a more risk-based and proportionate FATF Recommendation 8 translate into better implementation at the national level?

A new ASEAN handbook, authored by Lia van Broekhoven and Sangeeta Goswami of Human Security Collective, co-chair of the Global NPO Coalition on FATF, explores this question through experiences from ASEAN Member States.

The handbook traces the evolution of Financial Action Task Force (FATF) Recommendation 8 and examines the challenges that remain in its implementation, including weaknesses in NPO risk assessments, limited engagement with the sector, and the continued use of broad, compliance-driven approaches.

Drawing on country case studies and perspectives from regulatory authorities and the non-profit sector, it highlights key elements for effective implementation: robust and evidence-based risk assessments, meaningful NPO engagement, recognition of sectoral self-regulation, and measures that are targeted and proportionate to identified risks.

The handbook also considers the importance of addressing financial exclusion and ensuring that implementation is consistent with international obligations related to human rights and humanitarian action.

Read the ASEAN Handbook on Protecting Non-Profit Organisations from Abuse for Terrorism Financing here.