Protecting Not-for-Profit Organisations (NPOs) from Money Laundering and Terrorist Financing (TF) Abuse

The NPO community plays a vital role in delivering charitable services and assistance to those in need. However, like any organisation, NPOs must be vigilant in safeguarding themselves against money laundering and Terrorist Financing (TF) abuses. Recent cases underscore the importance of this, as charities have unwittingly accepted significant donations from individuals accused of engaging in money laundering activities. It is imperative for NPOs to implement robust measures and due diligence processes to ensure the integrity of their operations and maintain public trust.

Why NPOs need to combat Money Laundering and TF

• NPOs heavily depend on donations and fundraising efforts, making them easy prey for money laundering and TF, as conduits for illicit funds. 
• Charities often face constraints in terms of both financial and human resources, making it challenging to implement robust Anti-Money Laundering (AML) measures.
• The use of anonymous donors and donation channels, including e-Giving, increases the vulnerability of NPOs to money laundering activities.   
• As Singapore serves as an international financial hub, charities operating within its borders become natural targets for illicit activities.

Charities involved in money laundering or TF activities risk tarnishing their reputation, jeopardising the trust society places in them. This may in turn result in difficulties in securing future donations and raising funds.

To safeguard their operations and maintain public trust, NPOs should prioritise implementing effective AML measures, despite resource constraints, to mitigate the risks associated with financial crimes.
 

How RSM Singapore can help Charities through ADM

Why choose RSM Singapore?

• With extensive experience in providing internal audit and governance reviews for clients in the NPO sector, our track record demonstrates our commitment to enhancing organisational efficiency.
• We are experienced in reviewing and documenting AML policies and procedures for NPOs.
• We have successfully conducted Anti-Money Laundering training sessions tailored to the specific needs of NPOs.