Inyathelo has been closely involved in civil society’s response to FATF Recommendation 8 in South Africa. Following the promulgation of the General Laws Amendment Act and our involvement in the Nonprofit Sectoral Risk Assessment, we recognised the need for an evidence-based understanding of how these changes were affecting NPOs on the ground.

With the support of the Ford Foundation, we commissioned research titled, “Mitigating the Unintended Consequences of FATF Recommendations on the Nonprofit Sector in South Africa”, led by Adv. Gary Pienaar to inform our advocacy. The research report was launched on 28 January, and we would like to thank all those who joined us.

The webinar provided an opportunity to share key findings and reflect collectively on the unintended consequences of FATF Recommendation 8 for the nonprofit sector in South Africa. The webinar presented key findings highlighting significant capacity constraints within the sector, low levels of regulatory awareness, digital barriers and limited access to online platforms, challenges with compliance and registration, and increasing administrative and banking-related burdens. The discussion also reinforced concerns about financial exclusion, the lack of reliable data on the sector, the impact of regulatory complexity on managing money laundering and terrorist financing risks, and the need for more proportionate, risk-based approaches, improved communication, and stronger collaboration between government, regulators, banks, and civil society.

As reflected by one of our panelists, Lize van Schoor from the Financial Intelligence Centre:
“I want to congratulate Inyathelo for the foresight to come up with a project of this nature. Its scope is so broad, and the depth such that there is something for everyone; for government, regulators, umbrella bodies, and NPOs themselves.”

We are grateful to the research team, panelists, and all participants who contributed through the survey, focus groups, interviews, and live discussion. strengthens the evidence base and will inform ongoing advocacy, policy engagement, and sector support.Please find links to the research report, presentation slides, and the webinar recording below.

• Research Paper: https://www.inyathelo.org.za/images/researchreports/MUCON%20Report/
  
• Presentations: https://www.inyathelo.org.za/images/npobill/Consolidated%20Final%20Presentation.pdf
  
• Webinar Recording: https://www.inyathelo.org.za/partner-websites/npo-working-group

 
For further reading please see:

• The NPOWG Fact Sheet that includes the update timeline of activities of the NPO Working Group.
• The NPOWG website for previous communiques that have links enclosed to key documents.