Notes

NPO Experts Meet to Discuss New Challenges
Recently, a group of NPO Experts from across the world met in The Hague and Vienna to discuss the current state of NPO protection and new challenges. They represented 29 countries and engaged in discussions with the FATF Secretariat and select government representatives. This article describes the group's work and the importance of this convening. For more information about NPO experts and their role in international organizations, please visit the Global NPO Coalition website.

Global NPO Coalition on FATF

The global FATF/NFP dialogue is an opportunity to bring together an array of non-profits and governments to find solutions to the financial access constraints faced by NPOs. NPOs are subject to a wide range of trade-based and economic sanctions, including those imposed by the European Union and United Nations. These measures are intended to target illicit finance, including that which supports terrorism and money laundering. Ultimately, the FATF mandate requires these organizations to prove they are not financing terrorist activities and money laundering.

The FATF has established the Recommendation 8 as one of its recommendations. To be effective, the guidelines must be translated into national laws. However, the guidance provided by bank supervisors is often ambiguous or does not represent the true significance of the Recommendation. NPOs should be involved in the process of implementing these standards. There is an incentive for governments to engage in the process. The Global NPO Coalition on FATF calls for sustained outreach to the NPO sector and encourages countries to cooperate with relevant NPOs.

C&SN briefing featuring NPO experts

A series of informative events by C&SN in 2010 included a Roundtable Discussion on Zakat Committees in the West Bank and a briefing on the recent case of Holder v. Humanitarian Law Project. The case involved whether the Humanitarian Law Project violated federal criminal law by training members of two designated foreign terrorist organizations. In its original version, the criminal statute prohibited providing resources to terrorist organizations. Today, however, the language prohibits many different activities.

The Charity & Security Network (C&SN) has launched a Financial Access Working Group to advocate for changes in U.S. law that would make the counterterrorism rules for NPOs more compatible with international human rights standards. Recently, C&SN joined 120 NPOs in 46 countries in calling on the FATF to revise its recommendation regarding international programs. In its submission, the NPOs also pointed out the shortcomings of Treasury's current guidance for international nonprofits, including changes to the Humanitarian Assistance Facilitation Act.

FATF's revision of Recommendation 8

The Financial Action Task Force (FATF) is an international policy-making body that seeks to increase anti-money laundering and counter-terrorist financing enforcement. The latest recommendation for NPOs calls for countries to review their laws and regulations governing nonprofit organizations. These recommendations are intended to protect the integrity of the NPO sector and help countries adhere to FATF procedures. The revisions include details on the requirements that governments must meet before a nonprofit organization can be registered.

As a result of this revised Recommendation, the government and the NPO sector can work together to implement effective measures to combat the financing of terrorism. The government should avoid rhetoric that connects NPOs with terrorism financing, which overstates the risk and damages the NPO sector. Additionally, experts should evaluate the level of compliance of 40+9 Recommendations with international human rights and data protection laws. If necessary, NPOs can publish their own shadow report on the topic. The government may then be called upon to consider the sector's concerns when developing future policies.

C&SN's advocacy for NPOs

Through its efforts to ensure the protection of nonprofit organizations, C&SN has been successful in pushing the government to lift counterterrorism and humanitarian laws. Recently, C&SN has worked with the World Bank and ACAMS to create a joint project to revise the U.S. Bank Examination Manual. Through this initiative, C&SN has acted as a resource for civil society, and the organization continues to educate stakeholders about counterterrorism rules and humanitarian law, as well as the impact of those rules on nonprofit organizations in the United States.

A recent event at the National Press Club in Washington, DC, featured a panel of NPO experts and U.S. government officials. During this panel, Ambassador Soderberg and other experts stressed the need for the government to remedy the effects of counterterrorism laws and counterproductive security measures. The discussion focused on the over-broad application of the "material support" law, which criminalizes humanitarian aid and peacebuilding efforts.
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