On June 26th the Commission released its Supranational Risk Assessment (SNRA) Report. It assesses the vulnerability of various financial products and services to risks of money laundering and terrorist financing including also risks related to the non-profit sector, the first time ever such an analysis is conducted at EU level.
With regard to the non-profit sector, the report considers that non-profit organisations may be exposed to risks of being misused for terrorism financing purposes. It also recognises the concern that financial institutions may become reluctant to provide parts of the NPO sector with financial services (so called bank de-risking) and that this should be kept in mind when developing policy.
As expected, the report does not suggest EU regulation with regard to NPOs but recommends that Member States should ensure appropriate NPO coverage in their national risk assessments. It does suggest call on the European Commission to organise multi-stakeholder exchanges involving all professional sectors involved in business with NPOs and to provide more guidance/training for NPOs in receipt of EU funding. The publication of the SNRA falls within wider attempts to strengthen EU rules to tackle money laundering, tax avoidance and terrorism financing, see http://europa.eu/rapid/press-release_IP-17-1732_en.htm.
An NPO coalition under the lead of ECNL, EFC and HSC is organising an informal roundtable to review latest developments in counter terrorism financing and money laundering policy at international and EU level and its impact on the non-profit sector (NPOs) at Philanthropy House on July 4th 2017 (11.30-3.30). Please contact firstname.lastname@example.org for more information and if you want to join.