Carroll & O'Dea Facebook

When it matters,
the community
looks to us.

Contact Us

Back to "Community & Associations Newsletter - June 2017"

Publications

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.

  1. 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.
  1. 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.

Josephine Heesh, Partner
Merryn Lynch, Solicitor

Need help? Contact us now.

We're here to help. For general enquiries email or call 1800 059 278.
For Business lawyers call +61 (02) 9291 7100.

Celebrating 125 years in 2024 Contact Us