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2011/SOM2/CTTF/009
Agenda Item: 8
Project Proposal for APEC Workshop on Counter-Terrorism Finance and the Non-Profit Organization Sector: Investigations and Enforcement
Purpose: Information
Submitted by: United States
/ 24th Counter Terrorism Task Force MeetingBig Sky, United States
11-12 May 2011
Project Proposal for APEC Workshop on
“Counter-Terrorism Finance and the Non-Profit Organization Sector: Investigations and Enforcement”
Objective
The United States proposes an APEC workshop on the exploitation of non-profit organizations (NPOs) for terrorist finance, focusing on investigations and enforcement actions. Particular emphasis will be put on helping economies to implement the Financial Action Task Force (FATF) Special Recommendation VIII (SRVIII) pertaining to NPOs. The proposed project would build on the May 2009 APEC NPO Workshop in Bangkok, Thailand which was aimed at regulatory oversight frameworks for NPOs in the APEC region.
Background
NPOs play an important role in the global economy and in many individual economies and social systems, particularly in developing economies. However, as highlighted in a 2008 FATF paper[1], international counter-terrorism (CT) efforts have demonstrated that terrorists often seek to exploit NPOs to raise and move funds, provide logistical support for terrorist activities, encourage terrorist recruitment or otherwise support terrorist organizations and operations.
Preventing terrorist misuse of the NPO sector has direct benefits for APEC economies. The misuse of NPO funds by terrorist organizations diverts these resources away from social development and poverty reduction activities and has a negative impact on economic growth. The threat of terrorism results in less confidence, reduced investment and disrupted services.
Given the significance of APEC for the region’s long term security and economic sustainability, there is a pressing need to ensure APEC economies can effectively monitor and take action to prevent terrorist activities. In light of this link, APEC Leaders endorsed an Action Plan on Combating the Financing of Terrorism in 2002 that calls for further collaboration ‘in the provision of technical assistance to economies worldwide that need help in developing and implementing necessary policies, laws, regulations and institutions to combat terrorist-financing and money laundering’. In 2007, APEC Leaders reaffirmed their commitment to ‘protect our economic and financial systems from abuse by terrorist groups’.
In May 2009, APEC hosted an NPO Workshop in Bangkok, Thailand which focused on regulatory oversight frameworks for NPOs in the APEC region. Many participants at the event expressed interest in further APEC discussion and capacity building on investigations and enforcement actions in regards to terrorist financing using NPOs.
Project Proposal
The proposed two to three-day workshop responds to the expressed interest of several APEC economies by focusing on three aspects of investigation and enforcement actions with respect to terrorist misuse of NPOs: Information Sharing and Outreach, Targeted Financial Sanctions and Criminal Investigations/Prosecutions. The overall workshop agenda would be structured as follows:
1) Overview – Objectives and Importance
· Discussion of the nature of the terrorist threat to the NPO sector;
· Overview of the need for interagency and international coordination, including enforcement actions, role of intelligence, information sharing, interagency cooperation, investigative techniques, Financial Intelligence Unit (FIU) to FIU exchanges, law enforcement and regulatory agency cooperation, and other potential actions against terrorist threats
2) Designations, sanctions, asset freezing
· Objectives and process of targeted financial sanctions to combat terrorist financing in the NPO sector
· Importance of using intelligence and intelligence sharing in support of terrorism investigations
· Need to develop and train a dedicated counter-terrorism unit to investigate terrorist abuse of charities and officials who engage in terrorist financing; to impose targeted enforcement actions; and to engage in follow-up to ensure compliance with sanctions
3) Criminal Investigations/Prosecutions
· Reviewing sufficiency of legal authorities required to conduct investigations, prosecutions and impose targeted financial measures against charities and charitable officials engaged in terrorist financing
· Financial investigative techniques against terrorist financing
· Intelligence: developing the capacity to use intelligence to investigate, prosecute and share terrorism-related intelligence among agencies and other governments to prevent terrorist financing and support for terrorist organization
4) Domestic/Interagency/International Information Sharing and Outreach to NPO sector
· Law enforcement and charitable sector regulators/supervisors, assigning primary and secondary agencies for terrorist finance, and record keeping
· Importance of providing outreach to the domestic NPO sector to explain the TF threat, to provide guidance to help mitigate the threat, and to develop public-private partnerships
The workshop will be open to all APEC member economies, attracting participants from agencies responsible for oversight, investigations and enforcement of the NPO sector. Depending on the individual economy, this could include home and foreign affairs ministries, justice departments and ministries, and other agencies responsible for anti-money laundering and counter terrorism finance authorities, such as finance, taxation departments and central banks.
The workshop will seek to feature speakers and experts from a wide range of APEC economies, both developed and developing, to provide participants with a broad view of the experiences and challenges faced by economies throughout the Asia-Pacific region. Representatives from relevant international organizations will also be invited to participate.
Expected Outcomes
· Assist economies in implementing their international obligations on effective regulation of NPOs as set out in FATF Special Recommendation VIII.
· Enhanced understanding by APEC economies of ways to improve investigation and enforcement actions to counter misuse of NPOs by terrorists.
· Enhanced understanding by APEC economies of the importance of domestic and international information-sharing and cooperation, including engaging in outreach to the NPO sector to explain the terrorist risks faced by NPOs and ways to mitigate these risks.
· Identification of best practices
Expected Implementation Date
Summer/Fall of 2011
[1] Financial Action Task Force (FATF): the international inter-governmental policy-making body whose purpose is to establish international standards to combat money laundering and terrorist financing. Refer paper: March 2008 http://www.fatf-gafi.org/dataoecd/28/43/40285899.pdf