NFPs At Risk of Money Laundering and Terrorism Financing

Not for profits are at risk of being exploited by money launderers and supporters of terrorism, according to Australia’s first risk assessment of charities.

Australia’s financial intelligence agency, AUSTRAC, and the Australian Charities and Not-for-profits Commission (ACNC) released a joint report on Monday identifying the main criminal, money laundering and terrorism financing threats facing not for profits.

After evaluating around 257,000 registered not-for-profit organisations in Australia, researchers found there was a “medium” risk level for both money laundering and terrorism financing.

ACNC commissioner Susan Pascoe AM said charities needed to understand the risks.

“Charities are crucial in getting funds into conflict zones and other unstable regions, and this is not without heightened risk,” Pascoe said.

“All charities, whether they operate domestically or internationally, must understand money laundering and terrorism financing (ML/TF) risks, and ensure they have robust risk-based governance practices to prevent criminal misuse.”

To view the full Pro Bono article click here.

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