CSOs urge govts to cooperate in anti-money laundering fight

What the report says

The Observer reported that civil society actors are urging governments and financial regulators to work more closely with nonprofit organizations as countries strengthen systems to combat money laundering and terrorist financing. The discussion, held at an unspecified meeting, focused on concerns that some banks are cutting off or denying services to organizations they view as risky, a practice often described as “de-risking.”

According to the report, participants said the Financial Action Task Force’s Recommendation 8, which is intended to protect nonprofits from abuse by terrorist financiers through targeted and risk-based safeguards, has in some jurisdictions been applied too broadly. They warned that this can lead to heavier compliance demands, reduced access to banking and tighter restrictions on civic activity. Yona Wanjala, executive director of the Civic Advisory Hub, argued that civil society should be treated as a partner in financial integrity efforts, not only as a sector to be regulated.

The Observer also cited Ola Olukoyede, executive chairman of Nigeria’s Economic and Financial Crimes Commission, who said compliance should lead to stronger institutions, better governance and greater public confidence. Edward Amanyire of Uganda’s Financial Intelligence Authority said Uganda had learned from the meeting and noted that the country had removed not-for-profit organizations from its list of reporting entities under anti-money laundering obligations.

The issue matters because international financial crime standards can affect whether nonprofits can receive funds, pay staff or deliver services. Broader context: FATF standards are widely used by governments and banks to assess financial crime risks, but rights groups have often cautioned that poorly designed controls may unintentionally constrain legitimate civic work.