Best Practices on Combating the Abuse of Non-Profit Organisations
FATF Publications: November 2023
On November 16, 2023, the Financial Action Task Force (FATF) released an updated version of its best practices for preventing the misuse of non-profit organizations (NPOs). The Best Practices Paper offers examples of both good and bad practices to assist countries, financial institutions, and NPOs in the risk-based implementation of Recommendation 8.
Refer HERE for the Publication
Key Updates
FATF Definition of a Non-Profit Organization (NPO):
An NPO is a legal entity or organization that primarily raises or disburses funds for charitable, religious, cultural, educational, social, or fraternal purposes, or for other types of "good works."
Updated Best Practices:
FATF has revised its Best Practices Paper to align with the latest changes to Recommendation 8. For the first time, this paper contains examples of poor practices and clearly outlines how not to implement FATF’s requirements.
Implementing a Risk-Based Approach:
The paper offers guidance on how to adopt a risk-based approach to effectively address assessed terrorist financing risks.