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NCJ Number: 237772 Find in a Library
Title: Money Laundering and Terrorism Financing Risks to Australian Non-Profit Organisations
Author(s): Samantha Bricknell; Rob McCusker; Hannah Chadwick; David Rees
Date Published: 2011
Page Count: 83
Sponsoring Agency: Australian Institute of Criminology
Canberra ACT, 2601, Australia
Publication Number: ISBN 978-1-921532-85-6
Sale Source: Australian Institute of Criminology
GPO Box 2944
Canberra ACT, 2601,
Document: PDF
Type: Legislation/Policy Analysis
Format: Book (Softbound)
Language: English
Country: Australia
Annotation: This report examines the risks to the Australian non-profit sector of money laundering and terrorism financing, and it describes the regulatory changes that could minimize these risks.
Abstract: Charities have the potential to be manipulated as financial conduits for terrorist activity because they are cash intensive, regularly transmit funds between jurisdictions (often to areas of social unrest), and have historically operated under less formal regulatory scrutiny than for-profit entities. Thus, non-profit organizations (NPOs) are ideal vehicles for laundering money or collecting and transmitting funds to finance terrorism activities. The prevailing trend in the available typologies is that NPO misuse has come in the form of criminal or terrorist groups posing as legitimate charities, although there have been cases in which abuse occurs without the knowledge of the trustees, senior management, or donors. Evidence for the misuse of Australian NPOs for money laundering and terrorism financing is limited. Of the two prosecuted cases in which a charity was known to have been misused, one involved the fabrication of a charity to launder business-generated cash, and the other case involved the collection and disbursement of funds to a group engaged in both humanitarian and militant activities. Australia’s regulation of NPOs has received three official reviews or inquiries between 2001 and 2010. Many NPOs are required to report multiple times to different authorities over the course of the financial year. Self-regulation, most recently in the form of codes of conduct, has accompanied government regulation in order to ensure the NPO sector is adhering to basic operating and risk-management principles. Developing a response proportional to risk has been paramount in deliberations on how to best deal with the abuse of NPOs for money laundering and terrorism financing. 14 tables and 65 references
Main Term(s): Criminology
Index Term(s): Counter-terrorism tactics; Foreign criminal justice research; Foreign laws; Funding sources; International terrorism; Money laundering; Nonprofit organizations; Terrorist tactics
Note: AIC Reports Research and Public Policy Series 114
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