Liechtenstein Takes Measures to Combat Terrorism Financing Risks Through Non-Profit Organisations
Liechtenstein has issued a factsheet in cooperation with key financial authorities to help non-profit organisations (NPOs) identify potential risks of being misused for terrorist financing purposes.
The Risk: NPOs as Terrorist Financing Vessels
According to the Financial Action Task Force (FATF), NPOs are particularly vulnerable to being exploited by terrorists. The FATF Recommendations specifically target NPOs that primarily engage in raising and/or disbursing funds for common-benefit purposes, as they are considered to be more vulnerable to abuse.
Defining NPOs
FATF guidelines define NPOs as legal entities or arrangements that primarily engage in raising and disbursing funds for charitable, religious, cultural, educational, social, or fraternal purposes. The definition is not limited to a specific legal form, but rather focuses on the functional criteria of the organisation’s activities.
Identifying High-Risk NPOs
Not all NPOs are at equal risk of being misused for terrorist financing purposes. Liechtenstein’s factsheet aims to support NPOs in identifying potential risks and defining risk-mitigating measures.
The Factsheet: A Guide for NPOs
The factsheet, issued by STIFA in cooperation with the Financial Intelligence Unit (SFIU), the Financial Market Authority, and the Fiscal Authority, provides guidance on:
- Identifying potential risks of terrorist financing
- Defining risk-mitigating measures
- Legal forms commonly used in Liechtenstein for common-benefit activities
- Qualification as NPOs under FATF Recommendation 8
Obligation to Report Suspicious Activity
The authorities have also reminded persons subject to due diligence that they are obligated to immediately notify the SFIU if there is a suspicion of terrorist financing. Further information on the SFIU can be found online.
By taking these measures, Liechtenstein aims to strengthen its anti-money laundering and counter-terrorism financing efforts, ensuring a safer and more secure financial environment for all.