Financial Crime World

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Senegal Finance: Spaces for Change Extends Regulatory Compliance Clinic to Non-Profit Organizations

Spaces for Change, a leading advocacy organization, has extended its Regulatory Compliance Clinic to non-profit organizations (NPOs) operating in Francophone countries in West Africa, including Senegal. The clinic is supported by the Charles Stewart Mott Foundation and aims to equip NPOs with the necessary skills and resources to comply with regulatory requirements and mitigate terrorism financing threats.

West Africa Security Advocacy Project

The Regulatory Compliance Clinic is part of Spaces for Change’s West Africa Security Advocacy Project (WASAP), which seeks to strengthen the capacity of NPOs operating in the region. Burkina Faso and Senegal are currently on the Financial Action Task Force’s (FATF) list of “jurisdictions under increased monitoring” due to deficiencies in their Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) frameworks.

National Risk Assessments

In 2017, both countries conducted national risk assessments of money laundering and terrorism financing, which identified NPOs as vulnerable to terrorist financing. The Regulatory Compliance Clinic provides NPOs with practical strategies for mitigating risks, including:

  • Implementing robust internal AML/CFT controls
  • Developing comprehensive policies and procedures
  • Recruiting skilled Board members

Key Takeaways

Participants gained knowledge on legal and regulatory obligations, such as financial reporting and tax filings. They were also provided with practical tools and resources to avoid potential legal pitfalls. The clinic emphasized the importance of having diverse and skilled Board members capable of providing strategic direction and oversight.

  • Processes for recruiting, training, and retention
  • Independent expert presentations on measures to strengthen NPO capacity
  • Risk-based approach to combat money laundering and terrorism financing

Group Exercises

The clinic concluded with group exercises to test participants’ understanding and ability to apply the knowledge gained to real-life scenarios. Participants learned how to:

  • Identify terrorism financing risks
  • Understand inherent vulnerabilities
  • Apply various ways in which terrorism financing risks undermine credibility

Future Plans

Spaces for Change plans to expand the Regulatory Compliance Clinic to more NPOs operating in West African countries, advocating for the proper application of FATF Recommendation 8 by countries in the region. The clinic has garnered recognition from FATF as a global best practice for addressing terrorism financing abuse in the non-profit sector.

Conclusion

The Regulatory Compliance Clinic is an essential step towards strengthening the capacity of NPOs operating in West Africa to comply with regulatory requirements and mitigate terrorism financing threats. Spaces for Change remains committed to advocating for the proper application of FATF Recommendation 8 by countries in the region, ensuring a safer and more secure environment for non-profit organizations.