Countries should be aware of degrees of terrorist financing
- The Financial Action Task Force (FATF) plenary has concluded with discussions on key issues like money laundering, terrorism financing, and proliferation financing.
Modification to Assessment Methodology
- The FATF has modified its assessment methodology, emphasizing risk-based measures to safeguard vulnerable Non-Profit Organizations (NPOs) from terrorist financing abuse.
- These changes aim to prevent unintended consequences arising from the incorrect application of FATF requirements.
Recommendation 8
- In October 2023, changes to Recommendation 8 were agreed upon to enhance the protection of NPOs from terrorist financing abuse.
- Updates to best practices aim to assist countries, the non-profit sector, and financial institutions in implementing effective risk-based measures without disrupting legitimate NPO activities.
Other Outcomes
- The plenary also issued new risk-based guidance for implementing Recommendation 25 on beneficial ownership and transparency of legal arrangements.
- Identification of jurisdictions with significant virtual asset activity was conducted to assist in implementing FATF requirements.
Prelims Takeaway
- Financial Action Task Force (FATF)
- Foreign Contribution (Regulation) Act