On 16 November 2023, the Financial Action Task Force (FATF) updated its best practices on combating the abuse of non-profit organisations (NPOs). The update follows the revisions that the FATF made earlier this year to Recommendation 8 that aim to protect NPOs from potential terrorist financing abuse through the effective implementation of risk-based measures.

For the first time, the best practices include examples of bad practices and specifically explains how not to implement the FATF’s requirements. With the revision to Recommendation 8, and the updated best practices, the FATF has clarified how to implement measures that are proportionate to the assessed terrorist financing risks and prevent the implementation of measures that are overly burdensome or restrictive for organisations working in the not-for-profit realm.