CSOs urge govts to cooperate in anti-money laundering fight

Civil society organizations (CSOs) have called on governments across Africa to collaborate in the fight against money laundering, citing financial exclusion and the impact of the Financial Action Task Force's (FATF) recommendations as key concerns. The CSOs argue that banks are increasingly 'de-risking' by closing accounts or refusing services to perceived high-risk clients, leading to financial exclusion for organizations. This has significant implications for non-profit sectors, which rely on access to financial services to operate effectively.

The Observer Uganda reports that CSOs have urged governments in the region to cooperate in anti-money laundering efforts, citing concerns over financial exclusion and the impact of FATF recommendations. According to the article, many stakeholders at a recent meeting noted that banks are increasingly 'de-risking' by closing accounts or refusing services to perceived high-risk clients, leading to financial exclusion for organizations. This has significant implications for non-profit sectors, which rely on access to financial services to operate effectively.

The Financial Action Task Force (FATF) is an intergovernmental organization that sets global standards for anti-money laundering and combating the financing of terrorism (AML/CFT). Recommendation 8 of the FATF's recommendations aims to protect the non-profit sector from terrorist financing abuse through proportionate, risk-based measures. However, CSOs have argued that this recommendation has had unintended consequences, leading to financial exclusion for organizations.

The issue of financial exclusion is a critical concern for non-profit sectors in Africa. Without access to financial services, these organizations are unable to operate effectively, which can have far-reaching consequences for communities and individuals who rely on them. The CSOs' call for governments to cooperate in anti-money laundering efforts highlights the need for greater collaboration and coordination between governments, financial institutions, and civil society organizations.

The outcome of this matter has not yet been reported. However, it is clear that the issue of financial exclusion and the impact of FATF recommendations on non-profit sectors requires urgent attention from governments in Africa. CSOs will continue to push for greater cooperation and coordination between governments, financial institutions, and civil society organizations to address these concerns.