The third Africa High-Level Civil Society Conference on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) has commenced with a strong call for evidence-based regulation, enhanced stakeholder engagement and the protection of legitimate civil society organisations from disproportionate regulatory measures.

The conference, jointly organised by Spaces for Change (S4C), the Special Control Unit against Money Laundering (SCUML) of the Economic and Financial Crimes Commission (EFCC), and the Civic Advisory Hub, brought together more than 180 participants from across Africa for a series of expert-led parallel masterclasses focused on strengthening the continent’s AML/CFT framework while safeguarding civic space.

Held under the conference theme, participants from government institutions, financial intelligence units, regulatory agencies, civil society organisations and international partners examined emerging trends, regulatory challenges and practical solutions aimed at improving compliance with global anti-money laundering and counter-terrorism financing standards.

One of the major highlights of the opening sessions was the emphasis on adopting a risk-based approach to implementing the Financial Action Task Force (FATF) Recommendation 8, which focuses on protecting non-profit organisations (NPOs) from terrorist financing abuse without undermining their legitimate humanitarian and development work.

During the discussions, civil society representatives from several African countries shared practical experiences on advocating for the proper implementation of FATF Recommendation 8 within their respective jurisdictions, highlighting notable progress as well as persistent regulatory and operational challenges.

Regulators from Nigeria, Ghana and The Gambia also shared insights into how their respective countries are balancing efforts to mitigate terrorism financing risks while protecting the legitimate activities of non-profit organisations.

The regulators stressed that robust anti-money laundering measures and the preservation of civic space are not mutually exclusive but can coexist through transparent, proportionate and risk-informed regulatory approaches.

Participants strongly cautioned against the growing practice of treating all non-profit organisations as inherently high-risk entities, warning that blanket regulations and imposing compliance obligations designed for financial institutions on charities and non-governmental organisations could inadvertently worsen financial exclusion without delivering meaningful AML/CFT outcomes.

Experts noted that available evidence, including findings from Suspicious Transaction Reports (STRs) and Nigeria’s 2016 National Risk Assessment (NRA), supports the need for targeted, proportionate and evidence-based mitigation measures rather than broad assumptions about the risk profile of the non-profit sector.

The conference also identified FATF Recommendation 8 as one of the most frequently misunderstood international AML/CFT standards.

Participants maintained that effective terrorism financing risk assessments should be based on credible evidence rather than stereotypes, uncertainty or generalized assumptions about civil society organisations.

They further emphasised that non-profit organisations must be actively involved throughout the risk assessment, policy development and implementation processes to ensure balanced and effective regulatory outcomes.

Speaking during one of the masterclasses, Gina Wood and Emil Meddy of the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) observed that some jurisdictions continue to incorrectly classify certain charities as high-risk organisations, fail to adequately engage the non-profit sector or equate regulatory uncertainty with vulnerability.

They stressed the need for countries to align their regulatory measures with the actual risks identified during terrorism financing risk assessments and to ensure meaningful participation of non-profit organisations throughout the process.

The conference is expected to produce practical recommendations that will strengthen collaboration between governments, regulators and civil society organisations while promoting a more balanced, effective and rights-based approach to combating money laundering and terrorist financing across Africa.

Stakeholders expressed optimism that the outcomes of the conference would contribute to improving compliance with international AML/CFT standards while protecting the vital role played by civil society organisations in governance, humanitarian response, human rights advocacy and sustainable development across the continent.