Terrorism remains a threat despite lack of finance evidence

Though there is no known public evidence of terrorism financing abuse of Non Profit Organizations (NPOs) in Kenya, there is a plausible terrorism financing threat.

According to Terrorism Financing Risk Assessment for Non-Profit Organizations in Kenya released yesterday, the NPOs operating in or near areas with an active terrorist presence were potentially vulnerable.

“There are also concerns regarding NPOs whose activities or location exposed them to communities or individuals who may be sympathetic to terrorist groups or supportive to terrorism causes,” the report states.

The assessment, which was commissioned by the Government of Kenya, is to conduct a comprehensive review to understand the features and types of NPOs that may be at risk of terrorism financing abuse and the nature of the potential threat.

It is also in line with the requirements of Financial Action Task Force (FATF) recommendations.

The ongoing international campaign against terrorism financing has identified global typologies where terrorists and terrorist organizations may exploit NPOs through collection, consolidation, transfer, dissemination and use of funds raised, and providing logistical support.

The assessment also identified four possible mechanisms for terrorism financing abuse of NPOs including using them to raise funds to support terrorist groups and operations; to conceal the movement or distribution of terrorist funds; and diversion of legitimate NPO resources to terrorism actors, either intentionally, unintentionally, or under duress.

Other concerns include NPOs engaged in activities, which may bring them into contact with terrorist groups or supporters, those with unverified or unverifiable funding sources, and also those with foreign funding sources.

To better address potential terrorism financing risks, the Public Benefit Organizations Regulatory Authority (formerly NGOs Co-ordination Board) should develop mechanisms to identify the specific NPOs that have been identified as being potentially ‘at risk’ of terrorism financing.

The Business Registration Services (BRS) should also review current registration and reporting systems for Companies Limited by Guarantee (CLGs).

The report also recommends that the Religious Organizations Bill be enacted, and the Religious Affairs Commission advised on the contents of this assessment.