CE-FATF-ENG NEWSLETTER (Feb) 2017
Recommendation 8 and Nigerian Non-Profits
According to FATF, a Non-Profit Organization (NPO) is a legal person, an arrangement or an organization which principally engages in various forms of “good works”; raising or disbursing funds for charitable, religious, cultural, educational, social or fraternal purposes.
These organizations play a critical role in the society and through their activities provide comfort, hope and relief for individuals in need and in cases of urgent crisis. Unfortunately, there have been instances of charitable organizations being used to conceal the financing of terrorism and criminal acts.
Recommendation 8 of the FATF recommendations, therefore, primarily focuses on reviewing the laws and regulations that guide Recommendation 8 and Nigerian Non-Profits 2 non-profit organizations so that they are not subject to exploitation by terrorist organizations or used to fund illegal operations.
To ensure that NPOs are adequately protected against abuse from terrorist organizations, FATF deems it imperative that member countries put sound identification and protective measures in place.
Countries are mandated to utilize all relevant sources of information to identify non-profit organizations which as a result of their activities or characteristics at susceptible to terrorist financing abuse.
FATF also necessitates the adoption of a diverse range of approaches in identifying, preventing and combating terrorist financing abuse of NPOs. An effective approach should involve 3 all four of the following elements: (a) sustained outreach, (b) targeted risk-based supervision or monitoring, (c) effective investigation and information gathering and (d) effective mechanisms for international cooperation.
Recommendation 8 indicates that countries provide competent authorities which would be responsible for supervision, monitoring and investigation to their NPO sector with adequate financial human and technical resources. This would ensure transparency, accountability and effective performance of the recommendations.
Published with the support of OSIWA
This newsletter is published as part of the civic engagement on the Financial Action Task Force evaluation on Nigeria project supported by OSIWA. All opinions expressed are that of the authors and does not reflect that of OSIWA or NNNGO or any other organization(s) mentioned.
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