Protecting non-profit organisations from terrorist financing abuse and implementation of FATF Recommendation 8

Protecting the NPO sector from abuse for the purposes of terrorist financing is a key component of an effective CFT system. In this regard, on September 26-28, 2022 in Bishkek (Kyrgyzstan) two advanced training seminars on protecting NPOs from terrorist financing risks and implementation of the FATF Recommendation 8 were held. 

The main objective of these seminars is to support the Kyrgyz Republic in strengthening its capacity to identify, prevent and combat terrorist financing and to introduce effective national strategies in this area. The event marked the completion of activities that had started in April and continued during the training and advisory missions that took place in Bishkek from 9 to 17 July 2022.
The event was organised by the UN Counter-Terrorism Office (UNoCT), the EAG Secretariat and the UN Regional Centre for Preventive Diplomacy for Central Asia.

The first seminar, which took place on 26-27 September this year, aimed at raising awareness of the non-profit sector in this area. During the seminar, experts from the UNOCT, the EAG Secretariat, the UK and the Russian Federation familiarised the NPO sector with: 

• requirements of FATF Recommendation 8 and Immediate Outcome 10; 
• results of the mutual evaluation report and latest follow-up reports of Kyrgyzstan on this issue;
• the results of risk assessment of misuse of NPOs for terrorism financing purposes in Kyrgyzstan;
• practical experience of foreign NPOs in identifying and minimizing the risks of TF, fraud, etc.;
• regional examples of risk minimization measures;
• peculiarities of measures for NPOs operating with cash;

In order to consolidate the material studied, scenario-based exercises were held:

• on how to prevent NPOs from associating with persons included on sanctions lists (national and UN)
• project risk assessment and mitigation measures.

The second workshop, held on 28 September this year, focused on building the capacity of relevant officials involved in the regulation, supervision and investigation of the NPO sector. This consultation meeting focused on risk-based supervision. International and regional experts shared their experiences and examples:

• building risk-based supervision;
• informing NPOs about risks;
• awareness raising activities;
• building transparent and credible cooperation between NPOs and the government;
• assessment of NPO programmes by the regulator for the purpose of risk assessment.

The experts also presented examples of FATF global network countries in terms of identifying NPO sector supervisors to protect against TF risks. The material was followed by scenario-based exercise on how to assess the risks of NPO programmes and rank them by degree of risk for effective risk-based supervision.

EAG Secretariat