FATF Immediate Outcome (IO) 10 assesses the effectiveness of terrorist financing preventive measures and financial sanctions. In particular, IO 10 focuses on how terrorists, terrorists organisations and terrorist financiers are prevented from raising, moving and using funds, and from abusing the Non-Profit Organisation (NPO) sector.
The Mauritius NPO sector includes associations, charitable trusts, charitable foundations and company limited by guarantee.
The FATF typologies report examines the abuse of the NPO sector through a wide lens because the activities, and therefore vulnerabilities, of the sector extend beyond its financial flows to include material support. The abuse of the NPO sector by terrorists or terrorist organisations raises a number of complex strategic issues which is discussed in great length along with providing recommended solutions and an analytic foundation for further deliberations.
The FATF typologies report on the risk of terrorist abuse in NPOs can be downloaded here.
The FATF best practices paper on combatting the terrorist financing abuse of NPOs sets out numerous examples of implementation and misapplication of Recommendation 8 that should be useful for countries, financial institutions and NPOs when it comes to correctly implementing Recommendation 8. The document is illustrative of the types of measures that, depending on the circumstances, may be helpful for meeting the objectives of Recommendation 8 and provides examples of measures that are not in line with the intention of Recommendation 8 itself which have led to negative consequences for NPOs, their activities and the recipients of their assistance. One of the objectives of the FATF Best Practices Paper is to assist countries in the effective monitoring of NPOs at risk of TF abuse, without unduly disrupting legitimate NPO activities.
The FATF best practices paper on combatting the terrorist financing abuse of NPOs can be downloaded here.
The NPO sector is a vibrant sector, providing innumerable services to millions of people and its importance cannot be overstated. The exploitation of a sector devoted to good works by entities intent on harming innocents is a particularly egregious form of abuse that fundamentally undermines public trust in the sector. This guidance is focused on raising awareness of the threat so that NPOs in Mauritius can put their own operational safeguards in place to ensure resilience to terrorist financing abuse.
The NPO brochure ‘Being Resilient’ can be downloaded here.
The risk assessment of the NPO Sector was commissioned by the Government of Mauritius as part of its commitment as a member of Financial Action Task Force’s (FATF) Global Network to combat the financing of terrorism (TF). The NPOs identified to meet the FATF definition of NPOs in the risk assessment are Associations, Charitable Foundations, Charitable Trusts and Companies Limited by Guarantee.
The Executive Summary of Terrorist Financing Risk Assessment for the NPO Sector in Mauritius can be downloaded here.
The FATF Guidance on Beneficial Ownership for Legal Persons has been updated in line with the revised FATF Recommendation 24 to assist countries to identify, design and implement appropriate measures, thus helping countries in the prevention of the misuse of legal persons for criminal purposes and ensuring transparency of beneficial ownership.
The FATF Guidance on Beneficial Ownership for Legal Persons can be accessed here.
The FATF Guidance on Beneficial Ownership and Transparency of Legal Arrangements aims to assist countries and the private sector to better understand how transparency requirements apply to legal arrangements following revisions made to FATF Recommendation 25. It explains the FATF’s requirements to obtain adequate, accurate and up-to-date beneficial ownership information for express trusts and similar legal arrangements and highlights mechanisms to verify this information.
The FATF Guidance on Beneficial Ownership and Transparency of Legal Arrangements can be accessed here.