Risk Assessment for Terrorist Financing in South Africa’s Non-Profit Organization (NPO) Sector
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Implementation Training and Online Capacity Building
The risk assessment involved several capacity-building initiatives to ensure that all stakeholders were equipped with the necessary knowledge and skills to participate effectively.
Key Implementation Training Dates
- 19 June 2023: Implementation training for members of the technical group
- 14 February, 12-13 June 2023: Training for technical group and survey group
- 9 June 2023: Online consultation with Kenya, Mozambique, and South African survey consultants
- 17 July 2023: Online training for technical consultants and interviewers
Data Collection and Sources
The risk assessment utilized a combination of qualitative and quantitative data to provide a comprehensive understanding of the terrorist financing risks in the NPO sector.
Primary Information and Data Sources
- Data request and questionnaire from various agencies (e.g., Counter Terrorism Functional Committee, Financial Intelligence Centre, etc.)
- Suspicious transaction reports (STRs) from the Financial Intelligence Centre
- International funds transfer reports (IFTRs) from the Financial Intelligence Centre
- Cash threshold reports (CTRs) from the Financial Intelligence Centre
- Survey of 301 NPOs on perceptions of terrorist financing risk and their practices
Survey Methodology
The survey sample was randomly selected from databases of registered associations, non-profit companies, and public benefit organizations provided by various government agencies.
Sample Selection and Population
- The population under-represents trusts, as it only includes those trusts registered with SARS as Public Benefit Organizations.
- A total population of 252,549 NPOs was identified after excluding duplicates.
- A confidence level of 95% was achieved, indicating that the real value for any response is within ±5.65% of the measured or surveyed value.
Limitations
The survey had several limitations that may have impacted its validity and reliability.
Participation Bias and Representation
- Participation in the survey was voluntary, which may lead to selection bias.
- Smaller organizations displayed a greater willingness to participate in the survey, potentially under-representing larger NPOs.