Non-profit organisations and the risk of terrorism financing
In its Recommendations (see Recommendation 8), the Financial Action Task Force (FATF) explicitly points out that non-profit organisations (NPOs) are exposed to an increased risk of being misused for terrorist financing (TF) purposes.The FATF defines NPOs on the basis of functional criteria as follows:
The definition is consequently not limited to a specific legal form. However, not all NPOs are exposed to the risk of TF to the same extent. The FATF Recommendations target first and foremost NPOs that engage primarily in the raising and/or disbursement of funds for common-benefit purposes.
Common-benefit legal entities in which the raising and/or disbursement of funds for common-benefit purposes plays no role or only a minor role are therefore not in the focus of the FATF, as they are exposed to relatively low TF risks.
In order to support Liechtenstein NPOs in identifying potential risks in the area of TF and in defining and applying risk-mitigating measures, STIFA has issued the following factsheet in cooperation with the Financial Intelligence Unit (SFIU), the Financial Market Authority and the Fiscal Authority:
- Factsheet on risk of abuse by liechtenstein non-profit organisations for the purpose of terrorist financing «
With regard to the legal forms primarily used in Liechtenstein to pursue common-benefit activities and their qualification as NPOs within the meaning of FATF Recommendation 8, reference is made to the explanations in the factsheet (see point 2.2). However, common-benefit legal entities that do not fall under the FATF definition of NPOs are also advised to take the explanations in the factsheet into account accordingly.
In particular, persons subject to due diligence are reminded of the obligation to immediately notify the SFIU if there is a suspicion of TF. Further information on the SFIU can be found here: https://www.llv.li/de/landesverwaltung/stabsstelle-fiu
