In 2021, The Financial Action Task Force (FATF), which leads global actions to tackle money laundering, terrorism, and proliferation financing, initiated a project to scrutinize the limitations and harmful impacts of the flawed implementation of its standards, in particular, Recommendation 8 (R8) on the non-profit sector. In 2023, following a consultation process with stakeholders from the civil society sector and financial institutions, FATF made amendments to R8 striving to address the problem of the over-application of preventive measures to the civil society sector. To best interpret and use FATF’s R8, ECNL has put together a guide for CSOs explaining how and why the recommendations must be interpreted with a critical lens and provides useful paragraphs to quote toward authorities, banks, and other relevant stakeholders. Used effectively, the newly revised FATF standards can help civic society to:

• Underscore not all organizations are at risk of terrorist financing abuse;
• Urge governments to meaningfully include and consult civil society when addressing terrorism financing risk;
• Require banks to have a more nuanced approach to CSOs;
• Raise awareness and educate themselves and colleagues on how to push back on harmful narratives and restrictions stemming from security and counter-terrorism space.

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