The Charity Commission of England and Wales recently put out a notice entitled Charities encouraged to take part in Financial Action Task Force consultation on protecting charities against terrorist abuse.
As the Charity Commission noted "The Financial Action Task Force (FATF) is the global standard setting body for anti-money laundering and counter terrorist financing. FATF has developed a series of Recommendations for countries to implement. Collectively these represent the global standard that every country is expected to meet. FATF Recommendation 8 (R8) focuses on Non-profit organisations (NPOs) and the implementation of measures so that they cannot be abused for the financing of terrorism. Following a consultation in November 2015 on FATF’s Interpretative Note to R8 and its earlier typologies report about the risk to the NPO sector (see endnote 1) and Best Practices paper on Combating the Abuse of Non-Profit Organisations (see endnote 2) FATF is now consulting on the text of R8 itself to align the various documents and resources on this issue."
FATF Recommendation 8 currently provides:
Countries should review the adequacy of laws and regulations that relate to entities that can be abused for the financing of terrorism. Non-profit organisations are particularly vulnerable, and countries should ensure that they cannot be misused:
(a) by terrorist organisations posing as legitimate entities;
(b) to exploit legitimate entities as conduits for terrorist financing, including for the purpose of escaping asset-freezing measures; and
(c) to conceal or obscure the clandestine diversion of funds intended for legitimate purposes to terrorist organisations
The consultation is only until April 29, 2016.
Here are some of my notes from discussions I had with the FATF last year at FATF Consultation on non-profit anti-terrorism and anti-money laundering recommendations.
Do you require legal advice with respect to Canadian or Ontario non-profits or charities?
Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.