FATF revises terror-funding sanctions rules, brings humanitarian exemptions into focus

The Financial Action Task Force (FATF) has revised its global standards on terrorism-related financial sanctions, aiming to ensure that counter-terror measures do not unintentionally disrupt humanitarian assistance and essential support services.

The update focuses on FATF Recommendation 6, which deals with targeted financial sanctions linked to terrorism and terrorist financing.

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According to an official FATF statement, Recommendation 6 requires countries to implement targeted financial sanctions in line with United Nations Security Council resolutions (UNSCRs) related to preventing and suppressing terrorism and terrorist financing.

The revised Standards will now require countries to comply with the humanitarian exemption framework included in UNSCRs 2664, 2761 and 2615.

The FATF said the changes ensure that sanctions do not restrict the movement of funds, assets, resources, goods and services required for humanitarian assistance and basic human needs under the UN framework.

FATF President stresses balanced approach

FATF President Elisa de Anda Madrazo said the revised approach seeks to maintain security measures while allowing humanitarian support to continue.

“Measures to counter terrorism and its financing are essential to our collective security. As the Security Council has underscored, these measures are not intended to impede the timely delivery of humanitarian assistance or the provision of basic human needs. Our frameworks must ensure that both objectives can be upheld in a balanced and effective manner, and I urge all countries to take note of the important revisions the FATF has made to align with the UN framework.”

Move part of wider financial crime strategy

The FATF said the revisions are part of its broader efforts to reduce unintended consequences caused by the incorrect application of anti-money laundering and counter-terror financing measures.

The organisation added that it continues to promote a risk-based approach to combating financial crime while ensuring that humanitarian needs are protected.