FATF Risk Assessment Scoping Paper
The risk based assessment approach and mutual evaluations as the cornerstone to validating the effectiveness of Recommendation 8
PUBLISHED: OCTOBER 2015
Since 2014, the Financial Action Task Force (FATF) has been increasingly pushing countries to conduct a risk assessment of the non profit organization (NPO) sector. Such assessments must be conducted prior to the designing and implementing of rules and regulations to prevent/mitigate the abuse of non profits for terrorism financing. The risk based approach is the yardstick that FATF requires to validate whether the operationalization of its standards are effective in relation to the risk identified by the country.
This paper provides guidance on ways to navigate the complex landscape of FATF-related risk assessments.