In June 2025, the Financial Action Task Force (FATF) introduced a new procedure intended to mitigate the unintended consequences that its standards can have on non-profit organizations (NPOs). While the measure aims to ensure that rules on combating terrorist financing are applied proportionately and without suppressing legitimate civil society activity, leading UN Special Rapporteurs have raised serious concerns. They warn that the procedure excludes those most directly affected—NPOs, human rights defenders, and civil society monitors—from both initiating reviews and being consulted during drafting. Instead, only FATF members, regional bodies, or institutions such as the IMF and World Bank can trigger the process, leaving significant gaps in accountability, especially between long evaluation cycles when restrictive laws are often passed. The experts emphasize that without meaningful civil society participation, the mechanism risks lacking credibility, inclusiveness, and effectiveness, ultimately undermining its stated purpose of protecting civic space. Read the full letter here.
Source: OHCHR