What is FATF?
FATF is an inter-governmental body established in 1989 by the Ministers of its member jurisdictions. Ireland has been a member since 1991 and is committed to the implementation of the FATF’s recommendations. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing (ML/TF) and other related threats to the integrity of the international financial system.
The FATF monitors the progress of its members in implementing necessary measures, reviews money laundering and terrorist financing techniques and counter-measures, and promotes the adoption and implementation of appropriate measures globally. It conducts mutual evaluations of its members before a final report is compiled (MER).
How does this affect the charity sector?
The charity sector falls within the scope of the FATF rules on non-profit organisations (NPOs), for which the relevant recommendation is Recommendation 8. Recommendation 8 has been recently revised, after much consultation with the international NPO sector, with a view to minimising any negative impact on the work of the civil society sector that application of AML/CFT measures might have, directly or indirectly. The FATF produced a report in 2014 on the ‘Risk of terrorist abuse in non-profit organisations’, as well as a best practices paper in 2015 entitled ‘Best Practices on Combating the Abuse of Non-Profit Organisations’.
Anti-Money Laundering and Countering the Financing of Terrorism National Risk Assessment
Ireland has produced its first Anti-Money Laundering and Countering the Financing of Terrorism National Risk Assessment (NRA), aiming to provide a broad assessment of Ireland’s ML/TF risks, to enhance the understanding of them, and to develop effective strategies to address them.
The results of the national risk assessment will help inform policy and operations and the allocation of resources to the areas of highest risk. This is an understanding of the areas of risk where they should have the greatest focus. This is an evolving document which will be updated periodically.
FATF - The FATF website
Guidance on Anti-Money Laundering and Counter-Terrorist Financing for Charities - Charities Regulator
OECD - Money Laundering - The OECD page relating to 'Money Laundering'
EUR-Lex: Access to EU Law - Directive (EU) 2015 / 849 - On the prevention of the use of the financial system for the purposes of mondy laundering or terrorist financing
Department of Finance - The Department of Finance page relating to 'Anti-Money Laundering / Counter Terrorism Financing'
Department of Justice and Equality - The Department of Justice and Equality page relating to 'Money Laundering'
Central Bank of Ireland - 'Introduction to Anti-Money Laundering'
UK Charity Commission Guidance - Advice and information on key aspects of the UK's counter-terrorism legislation and how it may affect charities and their work