In 2021, the Financial Action Task Force (FATF) initiated a project to address the limitations and adverse effects of the flawed implementation of its standards, particularly Recommendation 8. The 2023 amendments to Recommendation 8 aim to rectify the misapplication and misunderstanding of R8, which had led to excessive and restrictive measures on civil society. The revised R8 and its Interpretive Note will require countries to protect civil society from terrorist financing abuse through the risk-based implementation of strengthened measures. The newly adopted amendments clarify that focused, proportionate and risk-based measures are at the core of an effective approach to identifying, preventing, and combatting terrorist abuse of civil society. When implemented appropriately, they are designed to protect the integrity of the civil society sector without unduly disrupting or discouraging legitimate civil society activities. The paper guides CSOs in addressing these changes, highlighting key recommendations, offering a critical interpretation, and providing useful quotes for engagement with authorities, banks, and stakeholders. Read more here.
Source: ECNL