Non-profit sector and risk of Money Laundering and terrorism financing

The Financial Intelligence Agency (FIA) has dedicated this section to inform the non-profit sector (Associations, Foundations and other entities) on the risk of this being used for illicit purposes, particularly for transactions related to Money Laundering or financing of terrorism.

The Financial Action Task Force (FATF) has issued a Special Recommendation called SR VIII, an Interpretative Note and a document entitled "Best Practice Paper" with which the states are urged to adopt legislative, regulatory and monitoring measures aimed at preserve the non-profit sector from abuse offenses.

Since 2002, the FATF has produced numerous documents showing the risk of Money Laundering and terrorist financing in relation to non-profit sector including:

a) FATF Terrorism Financing Report 2008;

b) FATF Freezing of Terrorist Assets: International Best Practices 2009;

c) FATF Report on Money Laundering Typologies 2003-2004 (Section II);

d) FATF Report on Money Laundering Typologies 2000-2001 (Section I).

FIA has translated in italian language the content of Special Recommendation VIII and its Interpretative Note to facilitate the understanding of such documents.