The national charity regulator is conducting a risk assessment for terrorism financing and money laundering in the not-for-profit sector, Inforia reports.
The Australian Charities and Not-for-Profits Commission will work with the Australian Taxation Office and the Australian Transactions and Reports Analysis Centre to conduct the assessment on the sector’s organisations.
A mix of data from the sector, combined with academic research and intelligence gathered by law enforcement agencies will underpin the assessment.
The risk of money laundering and terrorism financing, indicators of high-risk organisations, groups of charities that would benefit from targeted support and vulnerabilities that could be exploited to support terror groups are among the issues to be assessed.
The commission said the assessment would develop a whole-of-government framework to ensure the sector was monitored appropriately, investigations of at-risk non-profits were co-ordinated across agencies and outreach to charities and not-for-profits was secure.
“While overwhelmingly charities operate honestly and professionally, there is nonetheless the risk of misuse for illegal or improper purposes,” Commissioner Susan Pascoe said at the time.
“The heightened risk means all charities must take reasonable precautions and exercise due diligence to ensure that funds are not inadvertently directed towards terrorism.”
Some 4000 registered Australian charities and not-for-profits operate overseas.
Large image: Austrac 2015-16 Annual Report
Small image: Susan Pascoe ACNC