Obliging NGOs to comply with Security Council regulations for combating terrorism
In a strategic move aimed at strengthening the financial system of the third sector in the Kingdom of Saudi Arabia, the Board of Directors of the National Center for the Development of the Non-Profit Sector a new guiding manual that obliges all non-profit organizations to implement the mechanisms of the UN Security Council resolutions related to combating terrorism and its financing.
The center issued an urgent circular addressed to the chairpersons of the boards of directors of civil associations, the chairpersons of the boards of trustees of civil institutions and family funds, in addition to the chairpersons of the boards of civil associations and institutions, stating the issuance of Board of Directors Resolution No. “Q/25/16/7” dated 19/06/1447 AH, which sets a strict regulatory framework for financial and legal compliance.
Systemic and legal foundations
This important regulatory measure is based on the powers granted to the Center for Financial and Administrative Oversight pursuant to Cabinet Resolution No. 618, and on Article 82 of the Law on Combating Terrorism Crimes and its Financing issued by Royal Decree No. M/21. These articles authorize regulatory bodies to issue binding instructions and rules for non-profit organizations to ensure they are not exploited for any illegal activities, and in implementation of the provisions of the Kingdom's sovereign law.
Context of Vision 2030 and the development of the third sector
This step comes within the context of the major transformations taking place in the non-profit sector as part of the Kingdom's Vision 2030, which aims to increase the sector's contribution to the GDP to 5%. To achieve this sustainable growth, the Kingdom is working to build a robust legislative and regulatory framework that ensures the governance of associations and non-profit organizations, thereby enhancing their credibility and attractiveness to donors and supporters, and guaranteeing that donations and aid reach their intended beneficiaries through secure and transparent channels.
Compliance with international standards and the Financial Action Task Force (FATF)
At the international level, this guide reflects the Kingdom of Saudi Arabia’s full commitment to international standards in combating money laundering and terrorist financing, specifically the recommendations of the Financial Action Task Force (FATF). The adherence of non-profit organizations to Security Council resolutions is a vital indicator of the soundness of the country’s financial system and protects the charitable sector from the risks of exploitation, thus reinforcing the Kingdom’s position as a reliable international partner in the global fight against terrorism and the efforts to cut off its funding sources.
Implementation mechanisms and access to information
The newly adopted guidance aims to raise awareness and commitment among organizations by clarifying the precise mechanisms and procedures that help them to fully comply with the relevant Security Council resolutions, and to update the implementation mechanisms in accordance with what was stated in State Security Presidency telegram No. “103215”.
In this regard, Acting CEO Dr. Yahya Al-Musattah stressed the importance of all those in charge of non-profit organizations reviewing the guide and instructing their specialists to immediately comply with its regulations and procedures. To facilitate access, the center has made the guide available to beneficiaries through its official website or by scanning the QR code included in the circular. He emphasized that customer care channels are available to answer any inquiries and ensure the optimal implementation of these regulations.
