Legal and Regulatory Updates
Country Notes
The following countries nonprofit law profiles have been recently updated:
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OFAC Guidance on Gaza
On November 14, 2023, OFAC issued Guidance for the Provision of Humanitarian Assistance to the Palestinian People, which provides clarity about how funders, individuals, and NGOs can provide humanitarian assistance within Gaza. Notably, OFAC reminds funders to comply with specific sanctions targeting Hamas but reiterates there is no jurisdiction-based sanctions regime. Additionally, OFAC offers clarity around the import of fuel (a significant issue facing relief organizations), permitting this so long as the ultimate beneficiary is not a sanctioned individual or entity.
Nicaragua Continues NGO Crackdown
The government of Nicaragua continues to target NGOs, dissolving more than 25 in recent weeks and seizing their assets. NGOs have been vocal opponents of President Ortega, especially after the 2021 passage of the country’s foreign agent law, which has been used to stifle dissent and chill civil society activity.
A Return to Post-9/11 NGO Concerns?
In the wake of the September 11th attacks, NGOs became a target of governments across the world over largely unfounded accusations of serving as conduits for terrorist financing. Amidst the renewed conflict and chaos between Israel and Hamas, we expect continued attention to be placed on NGOs working in the region and the donors who support them. Relatedly, 100 civil society organizations signed a letter regarding several European countries’ decisions to suspend funding for Palestinian and Israeli organizations citing allegations of terrorist financing.
Just a few weeks ago, The House Ways and Means Committee held a hearing on rising antisemitism and terror financing during which the witnesses urged Congress to fund the President’s National Strategy to Counter Antisemitism. Most of the conversation focused on universities, though some members of Congress and witnesses did raise concerns about nonprofits.
Revisions to FATF Recommendation 8
The Council welcomes recent amendments to the Financial Action Task Force’s Recommendation 8, which has for years been a source concern and advocacy for civil society globally. Civil society action has been vital in shaping these amendments, including efforts led by the Global NPO Coalition on FATF. Recommendation 8 has historically been leveraged by authoritarian governments to enact anti-NGO legislation that curtails their freedoms and poses administrative and compliance burdens with the faulty logic that NGOs are particularly vulnerable to terrorist financing.
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