The Financial Action Task Force (FATF) published new guidance Friday on how nations and compliance professionals can best implement counterterrorist financing (CFT) strategies and policies.
The paper expands on recommendations issued in 2013 by the Paris-based intergovernmental group on national money laundering and terrorist financing risk assessments and includes input drawn from over 35 jurisdictions across the globe. Among other things, the latest guidance highlights the need for regular mechanisms to identify such illicit funds, including when assessing nonprofit organizations.
In the report, FATF also addresses the following:
Key considerations when determining the relevant scope and governance of a terrorist financing risk assessment, and practical examples to overcome information sharing challenges related to terrorism and its financing.
Examples of information sources when identifying terrorist financing threats and vulnerabilities, and considerations for specific country contexts (e.g., financial and trade centers, lower capacity jurisdictions, jurisdictions bordering a conflict zone, etc.).
Relevant information sources for practitioners when identifying cross-border terrorist financing risks but also terrorist financing risks within the banking and money or value transfer sectors, and facing those nonprofit organizations that fall within the FATF definition.
Good approaches for maintaining an up-to-date assessment of risk, and areas for further focus going forward.
(Unable to attach the complete Pdf report. Too large)
Australian charities and non-profit organizations (NPOs) are being used to launder dirty cash and finance terror, government officials have warned.
After evaluating thousands of registered NPOs, a new risk assessment by national financial intelligence agency Austrac and the Australian Charities and Not-for-profits Commission (ACNC), found significant links between registered charities and some of the country’s most serious and organized crime groups.
“Between 2012 and 2016, 735 investigations were conducted into suspicious criminal misuse –nearly all of these investigations related to fraud or theft of resources,” Justice Minister Michael Keenan MP said in a statement.
“There were also 28 SMRs related to terrorism financing involving NPOs, with a total value of $5.6 million,” Keenan explained, adding “what this shows is that NPOs have the capacity to quickly raise and camouflage the movement of large amounts of funds offshore to support individuals or groups engaged in foreign conflict.”
“While this is a relatively small figure compared to the overall income of the sector, it represents a significant figure in the current terrorism financing environment,” Keenan said.
Australia’s 54,000 registered charities generate over $134 billion annually, and thousands of these send around $1.5 billion in donations and grants overseas annually.
The report found a ‘medium’ risk level with regards to money laundering and terrorist financing within the sector.
Financial crime issues in Australia have made headlines recently after Commonwealth Bank of Australia (CBA) was alleged to have been used by money launderers and terrorist financiers to funnel dirty cash.
On Monday the Australian Prudential Regulation Authority announced it would launch an inquiry into its culture and compliance frameworks, among other issues. CBA said it welcomed the move.