The National Center for Non-Profit Sector (NCNP) today signed a Memorandum of Understanding (MoU) with the General Authority for Awqaf (GAA) to strengthen their strategic efforts in combating money laundering and terrorist financing. 

The MoU was signed on behalf of the NCNP by its CEO, Ahmed bin Ali Al-Suwailm, and on behalf of the GAA by its Governor, Emad bin Saleh Al-Kharashi. 

The MoU outlines the scope of cooperation between the two parties to detect money laundering and terrorist financing activities within the endowment and non-profit sectors. This includes identifying emerging methods used in these illicit practices and developing strategies to counter them. It also emphasizes fostering and strengthening collaboration and coordination between both entities to achieve national objectives in this area. 

The partnership between the NCNP and the GAA is part of a broader effort to foster integration among government entities, aiming to develop the nonprofit and endowment sectors and maximize their social and economic impact. 
 The MoU also supports the strategic objectives of the National Plan for Combating Money Laundering and Terrorism Financing. 

In this context, the NCNP has launched several initiatives to combat money laundering and terrorist financing. Most recently, the NCNP conducted a dedicated workshop for nonprofit organizations, including charitable societies and foundations, designed to raise awareness among board members, trustees, and executive leaders about key issues and emerging developments related to these illicit activities. 

The NCNP has also issued a Guide for Preventing Unsafe Financial Transactions in nonprofit Organizations, designed to protect entities from common financial and funding pitfalls. The Guide seeks to educate organizations on money laundering and terrorism financing risks and provide practical guidance for complying with relevant financial safety regulations and laws. 

In 2023, the NCNP represented Saudi Arabia as a co-author of the technical report titled “Abuse of Non-Profit Organizations for Terrorist Financing Activities,” developed in collaboration with several other countries under the Middle East and North Africa Financial Action Task Force (MENAFATF). Since 2019, the Kingdom has been a full member of the Financial Action Task Force (FATF), the first Arab nation to achieve full membership after holding observer status since 2015. Established in 1989 by the G7 ministers, FATF is an intergovernmental body that formulates and promotes policies to safeguard the global financial system from money laundering, terrorist financing, and related threats. Saudi Arabia’s active membership reflects its crucial role in combating these criminal activities across the region. 

Under the MoU, the two parties will enhance their cooperation and coordination across several key areas. This includes sharing expertise in detecting money laundering and terrorist financing activities, exchanging knowledge to better identify, assess, and understand associated risks, and sharing data and information in compliance with regulations governing intergovernmental information exchange. They will also collaborate to organize joint seminars and workshops aimed at advancing the objectives of both organizations.