You may have heard about “FATF” the global standard-setter in the fight against money laundering, and the financing of terrorism. But what does FATF’s work have to do with institutional philanthropy? If foundations have experienced more reporting requirements, more detailed questions from their banks or restrictions when they want to fund across borders, this could be somehow rooted in FATF policies.

This briefing summarises how FATF policies and related measures in Europe can impact institutional philanthropy’s work and what can be done to mitigate harmful effects and unexpected consequences of upcoming measures. Together with partners of the Global NPO coalition on FATF, the EFC has analysed how FATF’s policies and their implementation impact philanthropy and advocated for key changes, in particular:

  • an evolution of FATF policy towards a risk based and proportionate approach – not to consider the entire sector as being particularly vulnerable for abuse for terrorist financing.
  • a commitment for a genuine dialogue between FATF and representatives of sector. As part of this new dialogue the EFC participates on behalf of WINGS (Worldwide Initiative of Grantmaker Support organisations) in the agency annual private sector gathering which convened on 20-22 March 2017 to review pressing issues.

This note focuses on four issues of interest to the sector as outlined below:

  • Risk assessment & mitigation
  • Increased transparency
  • Digital developments
  • Financial exclusion 

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