Combatting money laundering and terrorist financing
On 24 May 2017 the ACNC co-hosted a seminar with Deloitte on the topic “Reducing the risk of money laundering and terrorist financing to the Australian non-profit sector”.
The seminar provided strategies for non-profits to mitigate the risk of international fraud.
- Internal governance and account controls
According to Jessica Horey, ACNC compliance manager, non-profits who are at risk of being the targets of international fraud :
- Have a small annual turnover.
- Are relatively new – having only been in operation for 1 to 4 years.
- Are service oriented; and
- Have effected at least one financial transfer either in or out of Australia.
Ms Horey recommended that to protect themselves non-profits should:
- Only use trusted financial institutions.
- Have employees rotate their roles and duties.
- Encourage and promote a culture of financial transparency.
- Relationships with on-site staff and partners
Oliver May, Deloitte Director, suggested Australian non-profits working with overseas partners should:
- Not rely on audits but – conduct on-site visits to ensure that the project is being undertaken in an efficient and appropriate manner.
- Provide opportunities for staff and partners to learn about the risk of international fraud, such as through:
- Running risk workshops
- Conducting surveys
- Providing whistleblowing hotlines
- Include management of risk as part of job descriptions and staff performance reviews.
The ACNC have developed a checklist for charities to help mitigate the risk of terrorism financing.