The not-for-profit sector has been identified as vulnerable to the risk of misuse for the purpose of terrorism financing. Charities may be at risk where sending money overseas of their charitable funds being diverted or otherwise misused, even if their intentions are to help in line with their charitable purposes.

It is important that charities use due diligence and have proper processes in place to ensure that their charitable funds are safe from misuse and are being used for their charitable purpose. Overseas charities have obligations under law, including the ACNC governance standards, to do so.

Taking steps to reduce risk

By following good governance practices, charities can ensure their risk is reduced.

Other resources which can also be used to help reduce risk include checking the:

• Attorney-General’s Department’s Living safely together: guide to help not-for-profits meet Australian obligations and other information on what you can do to help in Syria, for example
• Department of Foreign Affairs and Trade (DFAT): Information about Australian sanctions
• AUSTRAC’s register of remittance organisations
• Australian Council for International Development (ACFID)’s list of member agencies. ACFID members are all signatories to the ACFID Code of Conduct, which includes mandatory annual report and financial management requirements, and
• other information about organisations the Australian Government has listed as terrorist organisations.