This workshop equips participants with practical strategies to manage Anti-Money Laundering/Counter-Terrorism Financing (AML/CTF) risks in Non-Profit Organisation (NPOs) and charities, with a focus on Financial Action Task Force (FATF) Recommendation 8 and local regulations. Through interactive discussions and case studies, participants will explore regulatory requirements, identify vulnerabilities, and develop a risk-based compliance framework to enhance transparency and safeguard their organisation from financial crime.

At the end of this course, you will be able to:

• Understand the importance of AML/CFT for NPOs and Charities, including their exposure to financial crime risks
• Examine the Financial Action Task Force (FATF) Recommendations and their implications for NPOs and Charities, with a focus on Recommendation 8.
• Identify and assess vulnerabilities in NPOs and Charities operations that could be exploited for terrorism financing (TF) or money laundering (ML)
• Implement a foundation for an AML/CFT compliance programme tailored to the unique needs of NPOs and Charities

Programme Outline

Global and Local Regulatory Frameworks

• FATF Recommendation 8
• Singaporean AML/CFT laws and regulations relevant to NPO
• Code of Governance for Charities and Institutions of Public Character (“IPCs”)

Why are NPOs Vulnerable?

• Understand the unique characteristics of NPOs that can make them susceptible to misuse for ML and TF
• Common vulnerabilities: cash-intensive operations, complex funding structures, international operations, lack of robust internal controls
• Funding sources and partner
• Geographic risks and high-risk jurisdictions
• The potential impact of AML/CFT breaches for an NPO's reputation and operations

Typologies of ML/TF in the NPO Sector

• Examples of how NPOs can be exploited for ML/TF (e.g., diversion of funds, misuse of legitimate activities, shell NPOs)
• Case studies of real-world instances of ML/TF involving NPOs
• Understand the red flags and indicators of potential abuse

FATF Recommendation 8 and its Importance

• Address FATF Recommendation 8: Combating the financing of terrorism (CFT) – Not-for-Profit Organisations
• Explain the core principles of Recommendation 8: Risk-based approach, transparency, accountability, and supervision
• Highlight the importance of understanding and implementing Recommendation 8 for NPOs

Key Components of an AML/CFT Programme (aligned with Recommendation 8)

• Develop an AML/CFT policy for NPOs and Charities
• Customer Due Diligence (CDD) and Know Your Beneficiary (KYB) procedures, emphasising the importance of verifying the legitimacy of beneficiaries and partners as per Recommendation 8
• Transaction monitoring and reporting suspicious activity (STRs/SARs), including specific guidance on identifying TF-related red flags
• Internal controls and compliance policies, ensuring they address the requirements of Recommendation 8
• Staff training and awareness programmes, including specific training on Recommendation 8 and its implications for the NPO and Charities
• Independent audit and review, considering the specific requirements of Recommendation 8

Implementing an Effective AML/CFT Programme

• Understand the risk-based approach to AML/CFT, with a focus on the specific risk factors outlined in Recommendation 8
• Conduct a risk assessment specific to the NPO and Charity activities, beneficiaries, and operating environment, explicitly considering potential terrorist financing risks
• Identify and assess key risk areas (e.g., fundraising, disbursements, partnerships, international operations), incorporating the nuances of Recommendation 8
• Develop a risk register and implement appropriate mitigation measures, aligned with Recommendation 8

Monitoring and Review (incorporating Recommendation 8)

• Establish a system for ongoing monitoring of transactions and activities, with a focus on identifying potential links to terrorism financing
• Key elements of governance and compliance frameworks
• Identify and report suspicious transactions, including those related to TF, as emphasised in Recommendation 8
• Regular review and update the NPO's AML/CFT programme, ensuring it remains aligned with Recommendation 8 and evolving best practices

Training Methodology

This workshop utilises a blended and interactive approach to promote active learning and practical application. It features presentations with real-world examples to explain key AML/CFT concepts and FATF Recommendation 8, along with breakout sessions for case studies that illustrate real-life instances of misuse by NPOs and charities, helping participants identify vulnerabilities and risks. Participants will also receive takeaway materials, such as templates, checklists, and summaries, to support post-training implementation.

Closing Date for Registration
1 week before registration.

Intended For

This intermediate to advanced workshop is designed for board members, senior management, compliance officers, and business operations staff of non-profit organisations (NPOs) and charities, as well as regulators and oversight bodies supervising NPO and charity activities, and risk management professionals working with or advising these organisations.

Competency Mapping

Category 2 = 7.00 Hours

Programme Facilitator(s)