Johannesburg, Apr 19 (PTI) The Islamic State and its affiliates in Africa as well as Al-Qaeda are among five organisations identified as posing a risk to Non-Profit Organisations (NPOs) in South Africa in a report made public by the government on Friday.

The others named in the report titled ‘Terrorist Financing Risk Assessment for the Non-Profit Organisation Sector in South Africa' are Al-Shabaab and its affiliates in Africa, including Al-Sunnah Wa Jama'ah; Nigerian terrorist groups, including Boko Haram and MEND; and domestic right-wing extremists in South Africa.

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A host of South African government and private sector partners cooperated on the report with support from the European Union Anti-Money Laundering (AML)/Counter-Terrorist Financing (CFT).

The report hopes to result in focused, proportionate, and risk-based measures to mitigate the identified risks.

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Among these risks are NPOs raising funds or other support for foreign terrorist groups; establishing an NPO to support domestic terrorist activity; NPOs facilitating foreign travel for terrorist causes; NPOs being used as a conduit to channel foreign funds to terrorist groups in Africa; and NPOs using the Internet and online media for fundraising, recruitment, and propaganda.

Other factors addressed were NPOs supporting terrorist causes through cash or through remittance services; NPOs using multiple bank accounts and payment of ransoms to terrorist groups by NPOs.

“The sector risk assessment is in line with the Financial Action Task Force (FATF) global standards to combat money laundering and terrorist financing, as well as South Africa's follow-up action plan to address greylisting by the FATF in 2023,” the South African Revenue Service (SARS) said in a statement.

“The FATF is an intergovernmental body which sets global standards and measures for combating money laundering and terrorist financing. As a member of the FATF, South Africa is obliged to meet these standards,” it added.

The global standards of the FATF require that countries periodically identify and assess the terrorist financing risks to which organisations that raise or disburse funds for good works, are exposed.

The terrorist financing risk assessment of the NPO sector was a collaborative effort between government partners – including the South African Revenue Service (SARS), and the Department of Social Development (DSD) – public and private sector organisations, NPOs and umbrella organisations.

“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,” said Acting Director of the Financial Intelligence Centre (FIC), Pieter Smit.

“The assessment will augment our understanding of the risks of terrorist financing faced by NPOs in South Africa. The findings will help us formulate measures to prevent or mitigate the abuse of NPOs for terrorist financing purposes,” Smit said.

Among the recommendations in the report is the call for a more targeted approach to dealing with NPOs at a higher risk of terrorist financing and the inherent vulnerabilities identified.

“The report sets a new base, a reference point to inform further policy development in the sector on a risk-based 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,” said SARS Commissioner Edward Kieswetter,

“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,” Kieswetter added.

Dr Hendrietta Bogopane-Zulu, Deputy Minister of Social Development, said that the report will enable us to put in place appropriate NPO supervision measures informed by the scientific process in protecting NPOs.

"The NPO Risk Assessment will also ensure that NPOs in return comply with measures and standards set by FATF in protecting NPOs," the report said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)