The Financial Action Task Force (FATF) is the global body that formulates standards for combating money laundering (ML), the financing of terrorism (TF) and the proliferation of weapons of mass destruction. FATF’s 40 Recommendations and compliance mechanisms constute a comprehensive set of measures to combat money laundering, counter terrorism financing and facilitate cooperation between law enforcement authorities around the world.
FATF’s Recommendation 8 (R8) particularly focuses on addressing the exposure of nonprofit organizations (NPOs) to terrorism financing abuse. When FATF revised R8 in 2016, and subsequently in 2023, it did away with the broad categorization of NPOs as being potentially vulnerable to terrorist abuse. The revised R8 now mandates countries to conduct a risk-assessment of the non-profit sector in order to determine which NPOs are most vulnerable to terrorism financing abuse and also ascertain how well the extant legal frameworks and regulatory measures address the identfied risks.
Nigeria has taken concrete steps towards increasing compliance with FATF Recommendations, including FATF Recommendation 8. SPACES FOR CHANGE | S4C has led the advocacy for the correct application of FATF R8 in Nigeria, demanding greater governmental respect for civic freedoms while implementing measures framed around combating money laundering, countering terrorism and protecting national security.
In November 2023, Nigeria was re-rated from “non-compliant” to “compliant” with FATF R8 by the Inter-Governmental Action Against Money Laundering in West Africa (GIABA) – the FATF regional style body (FSRB) for West Africa. The activities below chronicle the public and private initiatives in Nigeria and other West African countries, which have contributed to moving Nigeria and other countries in the sub-region towards effective compliance with FATF R8.
