Money laundering and terrorism financing risks to Australian non-profit organisations
Samantha Bricknell Rob McCusker et al.
Australian Institute of Criminology
The non-profit sector is characterised by the social purpose of its operations, its reliance on volunteers and the inherent trust placed in it by the larger community. The sector is also differentiated by traditionally having less in the way of regulatory control and a looser form of administrative and financial management. The latter is often a casualty of resource constraints and the need to fulfil commitments to the public to maximise the use of funds on charitable and other projects. It is these characteristics that purportedly make the sector particularly vulnerable to criminal and terrorist abuse.
This report examines the risks to the Australian non-profit sector of money laundering and terrorism financing and describes the regulatory changes that could minimise risk. The report uses information derived from government, non-government and peer-reviewed literature, case law and regulator reports, and observations made by representatives from the non-profit sector, law enforcement and key regulatory agencies, and academia that were consulted for the study.