Foundations and wider NPO sector can input more easily into FATF evaluation process

The Financial Action Task Force (FATF) has now made it possible for foundations and other non-profit organisations to directly share materials and provide submissions ahead of FATF countries’ mutual evaluations of compliance with FATF recommendations.  Non-profit organisations can now submit input about counter- terrorism financing risks, mitigation policy and potential impact on civic freedoms directly with the FATF team of evaluators, who will also assess the country compliance with FATF Recommendation 8, which deals with NPOs.

NPOs are also invited to make suggestions to help the assessment team to identify which NPOs to gather more input from and/or interview during the on-site visit. NPOs should provide input in a format that mirrors the FATF Methodology. Input on a jurisdiction should be submitted to contact@fatf-gafi.org no less than two months prior to the indicated onsite visit of the team of evaluators.

More information can be found on the FATF website, which also provides a useful Q&A section:

FATF sets international standards on money laundering and terrorism financing policies, and over 190 countries have committed to implement 40 FATF standards (Recommendation Number 8 deals with NPOs). Countries are regularly assessed via mutual evaluations in how well they do in implementing those standards. It’s a great improvement that foundations and NPOs can now provide direct input into the mutual evaluation.

As part of the core group of the Global NPO Coalition on FATF, PA participates in regular conversations with the FATF Secretariat. At the end of last year, we discussed the FATF Strategic Review process, assessor training, Beneficial Ownership, and engagement with the UN Special Procedures mandates, among others. We welcomed the positive changes to the FATF website, including a standalone ‘Financial Inclusion and NPOs’ section, and the above mentioned link for NPOs to submit input the Mutual Evaluation process.

More information on the NPO coalition is available on the FATF NPO Platform. Please feel free to also contact Hanna Surmatz from the Philanthropy Advocacy secretariat for more information (hsurmatz@efc.be)