AL-QAEDA, BOKO HARAM COULD EXPLOIT LOCAL NPOs
Assessment details vulnerabilities of NPOs that may be targeted for terrorist financing abuse
SOUTH Africa’s government has identified five main terrorist financing threats – including al-Qaeda and Boko Haram – that have the potential to exploit nonprofit organisations (NPOs) to raise or move funds that may support terrorist organisations or be used in the carrying out of terrorist activities.
This is according to a 111-page risk assessment on terrorist financing report published by the Financial Intelligence Centre (FIC), the SA Revenue Service (Sars), and the Department of Social Development (DSD) – public and private sector organisations, NPOs and umbrella organisations.
The risk assessment, which included a survey of 301 NPOs, data submissions from various institutions such as law enforcement, regulatory and supervisory institutions, intelligence agencies and financial institutions, made several key determinations.
The assessment also describes the nature of this exploitation that may happen, and describes five inherent vulnerabilities of NPOs that may be targeted for the purpose of terrorist financing abuse – each of varying levels of significance and prevalence.
It identified five possible terrorist financing threats to NPOs in South Africa, saying these threats were coming from the Islamic State (IS) and its affiliates in Africa, al-Shabaab and its affiliates, including Al Sunnah Wa Jama’ah, and Nigerian terrorist groups including Boko Haram and MEND.
The report also named domestic right-wing extremists, and al-Qaeda – including al-Qaeda in the Arabian Peninsula (AQAP) and al-Qaeda in the Islamic Maghreb – as other risks.
Ultimately, these various threats and vulnerabilities were considered and the overall inherent risk of terrorist financing abuse of NPOs in South Africa was assessed “Medium”.
Acting director of the FIC, Pieter Smit, said the sector risk assessment was in line with the Financial Action Task Force (FATF) global standards to combat money laundering and terrorist financing.
Smit said it was also South Africa’s follow-up action plan to address greylisting by the FATF last year.
“Understanding and regularly assessing the particular terrorist financing risks to which South African NPOs are exposed remains the best measure to effectively combat their abuse and exploitation,” Smit said.
FATF greylisted South Africa last year due to the strategic deficiencies identified in the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regime.
Among the recommendations in the report was the call for a more targeted approach to dealing with NPOs at a higher risk of terrorist financing and the inherent vulnerabilities identified.
Sars commissioner Edward Kieswetter said the report set a new base, a reference point to inform further policy development in the sector on a riskbased methodology.
“Most importantly, the report and the collaborative approach followed in its development, reflects what can be achieved when we work together – not just as government regulators, but more importantly with our stakeholders in civil society,” he said.
“We hope that this sets the tone for future work in this sector – where Sars partners with the whole-of-government strategically to address vulnerabilities – be they at a policy level, or in the day-to-day operations of NPOs.
“We need to identify these vulnerabilities so that we can safeguard the integrity of non-profit organisations that play a pivotal role in South Africa’s socio-economic development.”