Protect CSOs from Money Laundering and Terrorist Financing (JO0064)

What is the public problem that the commitment will address? Governance in CSOs is still a challenge that influences their work and relationship with government and citizens. According to an assessment that targeted 689 NPOs, 55% of non-profit organizations (NPOs) surveyed believe that corruption and fraud are the major risks that non-profit organizations encounter. In the same survey results, all governance related issues such as lack of administrative and financial management capacity, due diligence, and use of cash transactions were issues that NPOs are facing. According to best practices, these are risk factors that may expose NPOs to exploitation from money laundering (ML) and terrorist financing (TF) crimes. On the other hand, the current government supervisory approach to the CSO sector is a ‘one-size-fits-all’ approach, focusing largely on compliance to the legal framework of the NPOs, with less focus on outreach activities.

What is the commitment? The commitment seeks to support an enabling environment for CSOs with a focus on improving their governance and protecting them from the risk of being exploited by ML/TF. This will be achieved by developing regulatory and supervisory requirements for CSOs that is risk-based and outreach activities to raise the awareness of CSOs about these requirements and the best practices to enhance their governance.

How will the commitment contribute to solve this public problem? Strengthening the governance of CSOs will improve sector performance, protect it from exploitation stemming from ML/TF, and increase overall confidence in it, not only from the perspective of the government but also from different segments of the population. In addition, the risk-based supervisory approach, including the outreach activities to be developed by the government in participation with CSOs, will ensure equity among the various CSOs and create an enabling environment for smaller organizations to enable them to serve society.

How is this commitment relevant to OGP values? (1) This commitment is relevant to the value of civic participation as it adopts a participatory approach in developing governmental policies and procedures related to CSOs. (2) It is also relevant to the value of access to information as it includes disseminating information throughout the various stages of its implementation and the dissemination of policies and procedures which will be developed to ensure citizens and CSOs easy access to this information. (3) The commitment is relevant to the value of public accountability as it enhances the financial transparency of and accountability for the public funds managed by CSOs’ activities.

Additional information Milestone Activity with a Verifiable Deliverable Starting date of implementation Ending date of implementation Develop policies and procedures that adopt a riskbased approach in supervising and overseeing the work and activities of CSOs to protect them from the risk of being exposed to ML/TF, along with strengthening their governance. Provided that the fundamental freedoms of CSOs will be guaranteed in conformity with relevant laws and legislation, these policies and procedures are developed through a participatory approach between the relevant governmental institutions and CSOs. 1/1/2022 30/6/2023 Design capacity-building programs, developing, improving, and adopting governance concepts for CSOs, based on the standards agreed upon between CSOs and the government. This will focus on appropriate governance structures, adopting high professional and ethical standards for staff and management, developing accountability mechanisms, and providing transparent reports for donors, governmental bodies, and the communities they serve, provided that the Governance Manual that was developed under the Fourth OGP National Plan (2018-2021) will be utilized. 1/1/2022 30/6/2023 Implement a series of face-to-face and online trainings, awareness-raising sessions, and media materials at the national level for all relevant governmental institutions. These activities are related to the adopted procedures and policies which aim to protect CSOs from the risk of being exposed to ML/ TF, and to strengthen governance within their work. 1/1/2022 30/6/2025 Implement a series of face-to-face and online trainings and awareness-raising sessions for CSOs about the adopted procedures and policies that aim to protect CSOs from the risk of ML/TF and strengthen governance within their work. 1/1/2022 30/6/2025 Issue periodic reports on the risks of ML/TF to CSOs and government-related measures to address them. Organizing an annual meeting between CSOs and the relevant government bodies to discuss the challenges they encounter in their work and how to enhance the partnership between them. This will result in enhancing transparency, accountability, and participation in the decision-making process between the government and civil society. 1/1/2022 30/6/2025

Action Plan Review

Commitment 1. Civil Society and Terrorist Financing

● Verifiable: Yes

● Does it have an open government lens? Yes

● Potential for results: Unclear