Thursday, August 21, 2008

Treasury Again Disregards Concerns with the Anti-Terrorism Financing Guidelines

On Friday Aug. 15 the American-Arab Anti-Discrimination Committee (ADC) coordinated a day long event with the US Department of Treasury entitled, "Charitable Principles of Good Governance and Anti-Terrorist Financing." The event was held at the Treasury Department intentionally two weeks before the beginning of Ramadan, where issues could be addressed regarding donating to charitable causes.

In opening remarks, Assistant Treasury Secretary for Terrorist Financing Patrick O'Brien said; "The broader exploitation of charities operating in high-risk regions raises serious questions and challenges for the United States, the international community, and charities operating in high-risk areas. Going forward, some key challenges include: adoption of best practices, utilizing alternative relief measures, and improving private sector relief efforts."

O'Brien heavily promoted the use of Treasury's Anti-Terrorist Financing Guidelines: Voluntary Best Practices for U.S.-Based Charities, which groups including OMB Watch, have strongly opposed. An article in BNA Money and Politics ($$) refers back to a July 2007 House Ways and Means Subcommittee on Oversight hearing in which Council on Foundations President Steve Gunderson said that "Treasury has not identified a single case of inadvertent diversion of funds from a legitimate U.S. charity to a terrorist organization."

Meanwhile, Muslim Advocates announced an initiative with the Better Business Bureau Wise Giving Alliance to help American-Muslim charitable organizations strengthen donor confidence in Muslim charities and protect them from any unfair scrutiny. Seven Muslim charities have so far volunteered for a review process designed by the bureau to validate their finances and transparency. According to a Muslim Advocates press release, they will provide a staff attorney and accountant, free assistance, identify information needed for meaningful review by the Better Business Bureau Wise Giving Alliance, and offer expert advice on how to meet the Alliance Standards for Charity Accountability. "Since 2001, Muslim charities have been under intense scrutiny as the federal government has focused extensively on the community's charitable institutions and their donors. Charities increasingly need guidance on how to meet these new challenges but frequently have limited resources or expertise to do so."