Nonprofit organizations (NPOs) and charities are at risk of being exploited for terrorist financing due to their access to large sums of money and their operational reach into high-risk areas. FATF's Recommendation 8 specifically recognizes that terrorist organizations may misuse NPOs to raise and move funds, provide logistical support, or conceal the diversion of funds for illicit purposes.
Option A (Correct): Many charities operate internationally, especially in areas with humanitarian crises. These regions often overlap with locations where terrorist organizations are active, making them vulnerable to abuse.
Option D (Correct): Charities handle large volumes of cash and enjoy public trust, which makes it easier for illicit actors to integrate illicit funds without raising immediate suspicion.
Option B (Incorrect): While charities are generally legitimate, the concern is that they can be exploited, not that they necessarily intend to misuse funds.
Option C (Incorrect): Although collecting donations is a legitimate practice, it does not directly contribute to their vulnerability to terrorist financing.