Financial Crime World

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Mauritania’s Efforts to Address Terrorist Financing through Non-Profit Organizations

Mauritania has been working to address the risk of terrorist financing through non-profit organizations (NPOs). In this article, we will discuss the country’s efforts and shortcomings in addressing this critical issue.

Characteristics and Types of Associations at Risk

There are 7,799 NPOs subject to the 1964 law for associations in Mauritania. However, only 1,233 operate mainly in collecting or distributing funds for charitable, religious, educational, cultural, social, or other good deeds. These organizations pose a risk of being misused by terrorist actors.

Assessment of Risks

The National Risk Assessment concluded that there are almost no threats posed by terrorist entities to NPOs. No cases have been identified where terrorist actors abused these organizations. This assessment highlights the importance of ongoing monitoring and vigilance.

Mechanism for Periodic Risk Re-Assessment

The National Risk Report recommended setting up a mechanism to periodically re-assess risks every 3 years, including the NPO sector. This will ensure that Mauritania remains proactive in addressing potential vulnerabilities.

Protocol with Supervisory Authorities

A protocol was signed between the Financial Intelligence Unit (FIU) and NPOs supervisory authorities to promote outreach and awareness programs about potential vulnerabilities in NPOs that can be misused for financing terrorism.

Supervision over NPOs

The Commission on Human Rights, Humanitarian Action and Relations with Civil Society is responsible for applying the Risk-Based Approach (RBA) in its supervision over NPOs. Priority is given to organizations at risk of obtaining or providing funding.

Sanctions for Non-Compliance

Article 44 of Law No. 017-2019 provides for effective, proportionate, and dissuasive sanctions for non-compliance.

Shortcomings

Despite these efforts, the report notes several shortcomings:

  • Lack of information on terrorist actors abusing NPOs: There is no available information on how terrorist actors abuse NPOs.
  • Insufficient evidence of outreach programs: There is no evidence to prove the execution of outreach programs to raise and maintain awareness among NPOs.
  • No best practices developed for addressing TF risk: No evidence exists that work has been done with NPOs to develop and refine best practices to address the TF risk.
  • Insufficient RBA supervision over NPOs: There is no evidence to enhance RBA supervision over NPOs.
  • Lack of mechanisms for exchanging information: No information are available about any mechanisms that ensure the immediate exchange of relevant information with competent authorities.
  • Limited expertise and powers to investigate NPOs: There is no evidence to what extent the expertise and powers to investigate NPOs are available.

Mauritania must address these shortcomings to ensure its efforts to combat terrorist financing through non-profit organizations are effective.