Financial Crime World

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.