The Financial Action Task Force (FATF) standards, designed to combat money laundering and terrorist financing, have become a double-edged sword. While intended to protect financial systems, these standards are increasingly being weaponized by authorities worldwide to crack down on civil society actors who threaten regime interests. This alarming trend is detailed in a comprehensive guide by Stephen Reimer, published by the Royal United Services Institute (RUSI).
The guide introduces the concept of “Authoritarian Abuses,” which refers to the deliberate misuse of anti-financial crime measures by states to suppress specific targets and pursue regime interests. Unlike the unintended consequences of FATF Recommendation 8, which broadly affects the non-profit sector, Authoritarian Abuses are more targeted and draw on a wider range of FATF standards. These abuses are not limited to autocratic regimes but can be perpetrated by any government to advance authoritarian ends.
Reimer identifies five major tactics of Authoritarian Abuses: intelligence fishing and scraping, strategic bank account freezing, harassment and prosecution of organizations, politically motivated pre-trial detention, and lawfare for transnational repression. These tactics exploit vulnerabilities in the FATF system, such as the “one-size-fits-all” approach to implementation and vague language in the standards.
The guide highlights three main target groups for these abuses: ethnic or religious minorities and social movements, individuals and groups seeking government accountability, and formally apolitical actors who refuse to conform to state demands. The impacts on these targets range from reputational damage and operational disruption to chilling effects on the broader civil society sector.
To combat these abuses, the guide offers several response strategies for civil society, including “compliant resistance,” litigation approaches, and attracting the attention of international organizations. It emphasizes the need for a global approach to sharing resilience strategies and advocacy pathways.
Reimer concludes by calling for recognition of the FATF’s inadvertent contribution to Authoritarian Abuses and urges reforms to mitigate these harms. The guide serves as a crucial resource for civil society actors worldwide, providing an evidence-based understanding of how anti-financial crime measures can be misused and offering strategies for resistance and advocacy.
