Regulations and supervision
Organisations as the FATF often warn for the risks that Non-profit organisations (NPO)/ charities run to be used in money laundering and terrorism financing. The banks all over the world are also increasingly placing additional requirements for this type of organizations. The question is why charities / NPO run extra risk and especially why criminals are so fond to use them.
Risks for NPO’s / charities.
Almost no one would like to be used in crime, but certainly for NPOs it is a big risk. Because even if they are only mentioned once as possible involved in crime, it affects their integrity. That NPO’s are an impeccable organization is often important for sponsors.
Our experience is that when NPO’s have a role in money laundering cases, almost without exception, they were not aware of their vulnerabilities. They went in with their eyes wide open.
The Rotary asked us if we could help their locale chairman to increase the awareness where those risks are. The main object was to create less vulnerability by deploying the available knowledge within the club and individual members.
In the context of these training / information sessions, we have worked with several examples of normal charities projects. With the participants together we “discover” how and why these projects were perfect for those with a criminal intent.
We would like to share the first part of one of these case positions. This summary animation , among other things, is used for the discussion with the participants.
Wondering if you are not being used?
Feel free to look at the animation and then answer the following 2 questions:
1. Would I believe in this charity project?
and the next question
2. Where exactly is that facilitating role of this NPO?
Is there more?
Incidentally, this is just an example from several specific risks that NPO’s run.
It is therefore understandable that financial institutions but also international organizations such as FATF look specifically at NPO’s.
For the continuation of this video but also the other relevant information you can feel free to contact us. On the other hand we promise to go further on specific topics on short term.
For non -profit organizations it is important to arm themselves specifically against abuse. Otherwise they run a risk that they “unknowingly have been used”.
You as a NPO would rather want to be in publicity in a different way than as a criminal facilitator.
Final remark and what the future will bring
But for now the most important thing is that all of us are aware that NPO’s / charities are a popular instrument to use for money laundering and that it requires extra preventive attention from all of us.
Enjoy watching and thinking!
And as you know on the website you can also read stories on how criminals set up their crimes.
Story 5 or 6 (release January 2025) will be on how a criminal used a non-profit organization.
Sorry other items seem to have priority and it will be in Dutch unless you ask for a translation.
