EU-ASEAN workshop advances Financial Action Task Force recommendation on terrorism financing in Southeast Asia

The workshop focused on the revised Recommendation 8, which aims to prevent abuse of non-profit organisations (NPOs) for terrorist financing, while safeguarding civic space. The revision was necessary to address earlier misapplication, which had led to disproportionate and restrictive measures against non-profit organisations (NPOs).

The activity featured insights from the EU’s Global Facility on Anti-Money Laundering and Countering the Financing of Terrorism (AML-CFT), who have been preparing a practical handbook specifically tailored to the ASEAN region for Recommendation 8 implementation, in partnership with the EU project Enhancing Security Cooperation in and with Asia and the Indo-Pacific (ESIWA+). Inputs shared during the event will shape the handbook's content, ensuring coherence with regional realities and regulatory environments.

Initiated by the EU Delegation to Thailand, with backing from ESIWA+, the event was co-organised with Thailand’s Office of the National Security Council (NSC) and the Anti-Money Laundering Office (AMLO). This marks a continued EU effort to assist ASEAN Member States in aligning effectively and proportionately with the revised FATF standards.

In her opening remarks, Francesca Arato, Deputy Head of the European Commission’s Service for Foreign Policy Instruments (FPI) Regional Team for Asia-Pacific, emphasised the importance of proportional measures and cooperation in counterterrorism financing. “Let us embrace the value of this cross-regional collaboration, which helps ensure that international standards are interpreted and implemented in ways that are both effective and locally appropriate”, Arato added.

Patai Sidisunthorn, NSC Assistant Secretary-General, said: “This workshop presents a great opportunity for Thailand, ASEAN Member States, and the European Union to exchange knowledge, experiences and best practices in preventing the misuse of non-profit organisations that could be exploited for terrorism financing. It also provides a valuable platform to build networks and foster cooperation among relevant agencies at the regional level.”

Andhika Chrisnayudhanto, Deputy for International Cooperation, Indonesia’s National Counter-Terrorism Agency (BNPT), facilitated ASEAN's endorsement of the handbook and workshop as part of its role leading the ASEAN Senior Officials Meeting on Transnational Crime (SOMTC) Working Group on Counterterrorism. 

“Once finalised, this handbook will serve as a practical reference for both policymakers and the non-profit community in ASEAN in strengthening dialogue, trust, and accountability between governments and civil society,” said Chrisnayudhanto.

Participants included representatives from national security bodies, financial intelligence units, and NPO regulators across ASEAN. The sessions delved into practical implementation strategies, risk assessment methodologies, and methods to avoid overregulation that might unintentionally hinder legitimate NPO activities. The event was notable for including participants from Timor Leste, ASEAN's newest Member State, just weeks after its official induction.

The ASEAN Handbook on Recommendation 8 aims for completion by late 2025. Further consultations on FATF recommendations are slated across the region, including on the financing of proliferation of weapons of mass destruction.

About FATF: The FATF Recommendations set out a comprehensive and consistent framework of measures which countries should implement in order to combat money laundering and terrorist financing. 

About ESIWA+: The ESIWA+ project enhances the EU’s security cooperation within Asia and the Indo-Pacific across four key areas: counterterrorism/preventing violent extremism, crisis management/addressing hybrid threats, cyber security, and maritime security. Co-funded by the European Commission’s Service for Foreign Policy Instruments (FPI), Germany, and France, ESIWA+ is jointly implemented by the German Corporation for International Cooperation (GIZ) and Expertise France.

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