According to the Financial Action Task Force (FATF) report on terrorism financing, charities and nonprofit organizations are often vulnerable to terrorist financing because they: (Select Two.)

The correct answer is A. Have a global presence that provides a framework for national and international operations and D. Enjoy the public trust and have access to considerable sources of funds, and their activities are. Nonprofit organizations (NPOs) and charities are at risk of being exploited for terrorist financing due to their access to large sums of money and their operational reach into high-risk areas. FATF's Recommendation 8 specifically recognizes that terrorist organizations may…

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

AHave a global presence that provides a framework for national and international operations and
BAre usually legitimate establishments and will not use the funds collected through donations for
CCollect donations from various sources, and their primary objective is philanthropy and social
DEnjoy the public trust and have access to considerable sources of funds, and their activities are

How the community answered

(37 responses)

A
81% (30)
B
8% (3)
C
11% (4)

Explanation

Nonprofit organizations (NPOs) and charities are at risk of being exploited for terrorist financing due to their access to large sums of money and their operational reach into high-risk areas. FATF's Recommendation 8 specifically recognizes that terrorist organizations may misuse NPOs to raise and move funds, provide logistical support, or conceal the diversion of funds for illicit

Topics

#terrorist financing#nonprofit organizations#charitable organizations#FATF

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