The Financial Action Task Force (FATF) Best Practices Paper on Combating the Abuse of Non-Profit Organizations was first written in 2002 at a time when the FATF had just introduced standards to address specific terrorist financing vulnerabilities and threats in the wake of the September 11, 2001, terrorist attacks.
This June 2015 update incorporates lessons learned since then, and is designed to:
- Assist countries in their implementation of Recommendation 8 on non-profit organizations, in line with Recommendation 1 and the risk-based approach, and consistent with countries’ obligations to respect freedom of association, assembly, expression, religion or belief, and international humanitarian law;
- Assist NPOs which fall within the scope of the FATF definition of a non-profit organization to help meet the objectives of Recommendation 8 and mitigate TF threats they may face; and
- Assist financial institutions in the proper implementation of a risk-based approach when providing financial services to NPOs, and guide donors who are providing funding to NPOs.