Team to protect NPOs from terrorist financing risk formed
The Government has formed a multi-agency team to coordinate the protection of Non-Profit Organizations (NPOs) from the risk of terrorist financing abuse.
The landmark move by the Cabinet Secretary for Interior and National Administration, Hon Kipchumba Murkomen, through the Kenya Gazette Notice No. 14153 of September, 4, is part of Kenya’s elaborate plan of addressing strategic deficiencies in the Countering the Terrorism Financing (CFT) efforts.
The Financial Action Task Force (FATF), the intergovernmental body that acts as a watchdog for money laundering and terrorist financing, put Kenya under increased monitoring – popularly known as “Grey List” after its money laundering and countering the financing of terrorism (AML/CFT) regime was found to suffer certain strategic deficiencies.
The country has made huge progress in addressing the strategic deficiencies, including what is popularly known in AML/CFT parlance as FATF Recommendation 8 and Immediate Outcome 10.
The newly constituted team, formally known as the Multi-Agency Co-ordination Working Group on NPOs at Risk of Terrorism Financing, is mandated to protect all charitable organizations that have not transited into the Public Benefit Organizations (PBO) Act, 2013 framework.
They include charitable faith-based organizations (FBOs), societies, companies limited by guarantee and community-based organizations (CBOs) which have not applied to be registered or to be bestowed with PBO status under the PBO Act.
The primary mandate of the inter-agency coordination working group that draws its membership from various regulatory and security institutions is to facilitate strategic consultation and cooperation to mitigate terrorism financing risks within the NPO sector.
It will coordinate the identification of NPOs undertaking charitable activities and at risk of terrorism financing, coordinate risk-based monitoring, sensitization efforts and the implementation of agreed actions and measures aimed at safeguarding the sector.
The inter-agency working group will also coordinate and harmonize approaches on matters related to non-profits at risk of terrorism financing, consider any issues raised by members on matters affecting NPOs at risk and provide a platform for sharing and exchange of information on matters related to the subject.
The inter-agency coordination working group will comprise representatives of the Ministry of Interior and National Administration (chairperson), the Office of the Attorney General, Public Benefit Organizations Regulatory Authority (PBORA), Business Registration Service, Registrar of Societies, Director of Social Development, National Counter-Terrorism Centre and the Financial Reporting Centre.
PBORA will host the Secretariat.
The team will have the power to regulate its own procedure, including developing rules of procedure and work plans as well as hold meetings to enable the effective discharge of its mandate.
It will also review relevant reports, policies, legislation or any document related to its mandate.
The inter-agency coordination working group may co-opt expert persons or institutions to support it in the discharge of its mandate.