Impact of anti-money laundering and countering terrorism financing measures on non-profit organizations in the Eastern Partnership region

02-07-2021
How have AML/CFT processes affected civil society in the region and what are the possible avenues for action?

The global trends of governments misusing standards of the Financial Action Task Force (FATF) to curb work of nonprofit organisations (NPOs) have been visible in the Eastern Partnership (EaP) region, as well. We have seen examples of

  • bank de-risking, when banks introduce disproportionate requirements or directly limit the access to financial services for nonprofits.
  • introducing burdensome requirements for the whole NPO sector instead of targeted, risk-based measures to those NPOs that are at high risk.
  • using FATF standards to limit fundamental human rights and restrict NPO activities.

Still, most organisations are not even aware that many of the problems they face during their daily operation are a result of AML/CTF measures. Our short summary outlines the impact of such measures and processes on NPOs in the region and offers some possible avenues for action against the misapplication of FATF standards.