Michael W. Ryan (J.D. 2008, Wake Forest; Associate, McDermott Will & Emery, Washington, D.C.) has published Comment, Not All Practice Makes Perfect: How the Treasury's Revised Anti-Terrorist Financing Guidelines Still Fail to Adequately Address Charitable Concerns, 43 Wake Forest L. Rev. 739 (2008).  Here is the Conclusion:

Following its determination that terrorists have used charitable organizations to move and raise funds, the Financial Action Task Force (“FATF”) explained that government oversight of charities should be “flexible, effective, and proportional to the risk of abuse.” And while the federal government has taken steps towards achieving these goals through its issuance of the Revised Guidelines, its effort has been hampered by the expansive regime of federal antiterrorism statutes and by the Guidelines themselves, as the governmental interpretation of these sources has coerced charities into completing extensive due diligence for each potential grantee before making any donation.

Unfortunately, this restrictive scheme has substantially increased charitable administrative costs, while offering little in the way of guidance to ensure that charities will not be held civilly or criminally liable for unwittingly aiding terrorists. Therefore, the Revised Guidelines need further revision. In short, the Treasury should modify its current “voluntary” program with one that creates a variable safe harbor for charities based upon an explicit set of risk factors decided upon in advance by the government. Furthermore, to facilitate charitable due diligence, the Treasury should create a comprehensive terrorist watch list, as well as consider lessening several of its more onerous requirements. Perhaps with these revisions to the Revised Guidelines, the federal scheme regulating charitable grants will finally be responsive to legitimate charitable concerns while maintaining the government’s ability to ensure terrorists do not obtain charitable resources.