The European Commission plans to issue a policy paper on voluntary anti-terrorist financing guidelines for EU based non profit organisations (NPO) in the course of 2011.  This is one of the many initiatives set out in the Commission Action Plan implementing the Stockholm Programme, the new multiannual programme which will guide EU action in the area of freedom, security and justice for the period (2010-2014)

 Speaking at the EFC Foundation week event on transparency and accountability, a representative of the Commission announced that foundations will be consulted in the drafting process. The EFC has been invited in this context to present good examples of self-regulatory guidance in the foundation sector at a meeting bringing together representatives from Member State governments and NPO umbrella organisations in Brussels on 2 July.

 The initiative is part of the EU institutions efforts to prevent the abuse of NPOs for financial criminal purposes and terrorist financing under the lead of the Financial Action Task Force, the global standards-setting organisation to combat money laundering and terrorism financing.  Already in 2005 the Commission released a policy paper on the “Prevention of and Fight against Terrorist Financing through enhanced national level coordination and greater transparency of the non-profit sector. The proposal aimed to reduce vulnerabilities of NPOs to financial criminal abuse including terrorist financing. The EC former Directorate-General for Justice, Freedom and Security commissioned two studies in 2008 and 2009:

·         A study on public and self-regulatory initiatives improving transparency

·         A survey aimed at assessing the types and extent of abuse of NPOs, including foundations, for terrorist financing and other financial criminal purposes and setting out recommendations to address shortcomings.

For details visit our Transparency and Accountability page

The EFC has been involved in the discussions since 2005 and has repeatedly call the EC for cautious action in the field stressing that there is no scope for specific legislation regarding accountability and transparency (A&T) of foundations at EU level. There is no one-size fits all solution, and any measure by the EU and other countries to address A&T and counter-terrorism concerns should not undermine the integrity and independence of action of foundations and their international work. The EFC believes that specific A&T measures where needed should be designed at the national level in consultation with foundations and other NPOs. The importance of NPOs’ involvement for the success of A&T initiatives is key. It is also crucial to recognize  that there is no single model to uphold transparency and accountability, as well as to acknowledge that foundations’ board and staff are the best placed to develop effective A&T and due diligence policy and practices to sustain their public benefit mission.

For further information please contact, Emmanuelle Faure at the EFC secretariat at eu@efc.be