The Financial Action Task Force (FATF) is an intergovernmental organisation established in 1989 to develop policies to combat money laundering and terrorist financing (ML/TF). The FATF sets international standards (the '40 Recommendations') that countries are expected to implement to prevent, detect, and prosecute financial crimes. These recommendations cover a wide range of areas, including customer due diligence (CDD), record-keeping, suspicious transaction reporting, and international cooperation.

FSRBs are regional organisations that model their work on the FATF's 40 Recommendations. They play a crucial role in promoting AML/CFT standards and conducting mutual evaluations of member countries within their respective regions. The nine FSRBs collaborate with the FATF and share information to ensure a globally consistent approach to combating financial crime.

Recommendation 8 focuses on non-profit organisations (NPOs) and how they could potentially be used for money laundering (ML) and terrorist financing (TF). The FATF recognises the vital work of NPOs in providing charitable services worldwide and does not intend to disrupt legitimate NPO activities. It does not apply to all NPOs, but rather to those deemed vulnerable to terrorist financing abuse. Recommendation 8 has been revised following advocacy efforts and directed governments to take a more nuanced, risk-based approach when developing counterterrorism financing measures. This was done to avoid the disruption of legitimate non-profit activities. The FATF released amendments to Recommendation 8 and its Interpretive Note in 2023 to address the misapplication and misinterpretation of the recommendation that had led countries to apply disproportionate measures on NPOs.

FATF Recommendation 24: Transparency and Beneficial Ownership of Legal Persons. The purpose of this recommendation aims to ensure that information on the beneficial ownership and control of legal entities (e.g., companies, nonprofits) is accurate, up-to-date, and available to competent authorities. Beneficial ownership refers to individuals who ultimately own or control the entity, even if it is held in someone else's name.

FATF Recommendation 25: Transparency and Beneficial Ownership of Legal Arrangements. The purpose of this recommendation addresses the need for transparency in legal arrangements, such as trusts, ensuring that authorities can access information on the individuals who control or benefit from them.

A Beneficial Owner (BO) is a natural person who ultimately owns or controls a legal entity, such as a company or trust. This control can be exercised through direct ownership, indirect ownership, or through other means like holding a senior management position. The FATF recommends a 25% ownership threshold to identify a BO, but this can vary by jurisdiction.

An NCR is a national database that stores information on beneficial owners of legal entities registered in that country. The purpose of the NCR is to increase transparency and combat money laundering and terrorist financing by making it easier for authorities to identify the individuals behind companies and trusts.

Beneficial ownership registers help deter and detect financial crime by making it harder for criminals to hide behind complex ownership structures. They provide authorities with the information needed to investigate and prosecute money laundering, terrorist financing, tax evasion, and other illegal activities.

Challenges with NCRs include ensuring data accuracy, keeping information up-to-date, preventing misuse of data, and balancing transparency with privacy concerns. There can also be discrepancies in definitions and thresholds for identifying UBOs across different jurisdictions, making international cooperation and information sharing more complex.

The CIPC (Companies and Intellectual Property Commission) requires NPCs to annually confirm compliance with relevant sections of the Companies Act. This involves submitting a report through CIPC's online portal, where the NPC attests to its compliance with various legal requirements. This process is overseen by the board, which is responsible for ensuring accuracy and completeness of the information submitted.

National risk assessments involve identifying, assessing, and understanding the specific ML/TF risks a country faces. This understanding enables countries to tailor their AML/CFT measures to their unique circumstances, focusing resources where the risks are highest. This targeted approach allows for more flexibility in implementing CDD measures, potentially enabling a more inclusive financial system without compromising the integrity of the financial sector.