On 16th November 2023, the Financial Action Task Force (FATF) has updated its Best Practices to reflect the amendments to Recommendation 8 and to help countries, the non-profit sector and financial institutions understand how to effectively protect relevant NPOs from abuse for terrorist financing, without unduly disrupting or discouraging legitimate NPO activities.
For the first time, an FATF best practices paper includes examples of bad practices and particularly explains how not to implement the FATF’s requirements. With the revision to Recommendation 8, and the updated best practices paper, the FATF has clarified how to implement measures that are proportionate to the assessed terrorist financing risks and prevent the implementation of measures that are too difficult or restrictive for organisations working in the not-for-profit realm.
The document can be accessed here.