Conflict zones, Failed states and
Jersey National Risk Assessment [NRA] of Non-Profit Organisations [NPO] determines a medium to low risk,
- The Bailiwick of Jersey National Risk Assessment [NRA] of Non-Profit Organisations [NPO] is the first assessment of the risk to be published.
- The report is part of the requirements of the international standard-setter on financial crime, the Financial Action Task Force (FATF), and follows the publication of Jersey's:
- National Risk Assessment of Money Laundering in September 2020- https://www.gov.je/Industry/Finance/Pages/NationalRiskAssessmentMoneyLaundering.aspx
- National Risk Assessment of Terrorist Financing in April 2021- https://www.gov.je/Industry/Finance/Pages/NationalRiskAssessmentTerroristFinancing.aspx
NRA NPO RESULT
- Jersey's non-profit organisations have been assessed to determine the risk they face of being abused or misused for terrorist financing (TF).
- It concludes that, while overall, Jersey's non-profit sector presents
- Medium to low risk,
- Around 11% have heightened risk and greater vulnerability to TF.
- Overall the non-profit sector in Jersey presents medium to low risk.
- However, a subsector of around 11% of Jersey's NPOs presents heightened risk and greater vulnerability to
- Terrorist financing (TF) abuse and misuse.
- These NPOs, being both Registered NPOs and Regulated NPOs, tend to:
- Operate in higher-risk jurisdictions, such as:
Disaster areas where support such as humanitarian aid and disaster relief is desperately needed and which, equally, are areas where terrorists also tend to undertake activities
- Use partners to seek to reduce risk; however, this practice may also bring additional transfer risk, requiring careful management
- Use money remittance methods, such as cash, which may render the tracing of funds to legitimate beneficiaries more challenging
- Information provided in the National Risk Assessment suggests
- That the sub-section of vulnerable NPOs, in the main, has a high-risk tolerance and a low systems and control environment,
- Rendering them more vulnerable to terrorist financing misuse and abuse.
- Since the risk of proliferation financing (PF)
- Also benefits from robust systems and controls and
- Displays some similarities in terms of vulnerabilities to those of TF misuse and abuse,
- It is also anticipated that some non-profit sectors equally present a higher risk to PF misuse and abuse.
- The non-profit sector in Jersey must remain a thriving, diverse and essential part of the Jersey economy. Therefore, safeguards need to be put in place to ensure that Jersey continues to comply with international standards and reduce the level of TF risk exposure overall.
- For Jersey to successfully manage TF risks and remain a responsible international citizen, Vulnerable NPOs will need to enhance their controls to demonstrate that they effectively identify, assess, manage, and mitigate TF risks.
- Further work will also be required during 2022 to
- Ensure that the regulatory framework is developed in a way that is supportive of the non-profit sector.
- This will include establishing in law the criteria that define a higher risk NPO for TF abuse purposes (Prescribed NPO).
- Outreach, engagement and guidance will also be crucial components in this endeavour, working collaboratively across agencies, the non-profit and the TCSP sectors
- National Risk Assessment for Non-Profit Organisations –
- https://www.gov.je/SiteCollectionDocuments/Industry and finance/R National Risk Assessment of NPOs.pdf