The Department of Social Development
Non-profit organisations (NPOs) are integral to addressing social ills in communities but face risks ofbeing abused for terrorist financing and money laundering purposes due to the nature of their structure, income generation and beneficiary payment methods. NPOs are not designated as accountable or reporting institutions in terms of Schedules 1 and 3 of the Financial Intelligence Centre Act (FIC Act), the Financial Action Task Force (FATF) has identified the sector as vulnerable to abuse by criminals for terrorist financing and money laundering.
NPOs need to understand how money laundering and terrorist financing works and why their sector is pivotal to criminals and criminal enterprises that want to exploit them. Oversight on NPOs are provided by the Department of Social Development, the Companies and Intellectual Property Commission, the Masters of the High Court and the South African Revenue Service. Compliance by NPOs should be measured and aimed at reducing the inherent money laundering and terrorist financing risks in the sector.
| Document | Organisation | Topics address | Date Issued |
| Regulations in respect of Amendment to the Non-Profit Organisation Act |
Government Gazette |
|
8 May 2023 |
| Invitation to Submit Comments: Regulation in Respect of Amendments to the Non-Profit Organisation Act, 71 of 1997 as contained in the General Laws Amendment Act, 22 of 2022 | The Department of Social Development |
|
21 February 2023 |