Charities and Non-Profit Organizations Must Comply with Anti-Money Laundering Guidelines

Compliance is Key for Charities and Non-Profit Organizations

The Financial Intelligence Unit (FIU) in St. George’s, Grenada has emphasized that charities and non-profit organizations are not immune to money laundering and terrorist financing activities. To ensure compliance with anti-money laundering guidelines, these entities must adopt necessary due diligence measures.

Procedural Guidelines for Reporting of Suspicious Transactions

The FIU’s Procedural Guidelines for Reporting of Suspicious Transactions relating to Money Laundering and Terrorist Financing highlight the importance of reporting any activity suspected of being linked to money laundering or terrorist financing. This enables the unit to guide and assist these entities in preventing their use for such purposes.

Key Requirements for Compliance

• Charities and non-profit organizations must apply the provisions of the guidelines with necessary modifications to ensure proper compliance.
• Entities must review their laws, policies, and guidelines regularly to verify compliance with obligations outlined in the guidelines.
• Reporting any suspected activity is crucial, as it enables the FIU to guide and assist entities in preventing use for money laundering or terrorist financing purposes.

Additional Standards and Systems of Internal Controls

Entities may adopt higher standards and systems of internal controls commensurate with their risk-based methodology to reduce or mitigate identified risks. Any additional standards or systems adopted must be documented and made available when required, such as during an inspection or otherwise in pursuance of the provisions or objectives of the guidelines.

FIU’s Duties and Responsibilities

The Financial Intelligence Unit has outlined its duties and responsibilities in matters relating to suspicious activity reports concerning money laundering and terrorist financing. The unit is responsible for:

• Keeping a record of reports received, which must contain specific information, including the date of the report, the person who made it, and any supporting evidence.
• Promptly acknowledging receipt of a report in writing and assigning it to an investigating officer.

Conclusion

The Financial Intelligence Unit has emphasized that all entities and professionals operating within the financial sector must adhere strictly to these guidelines. Compliance is key for charities and non-profit organizations to prevent their use for money laundering or terrorist financing purposes.

Source: Procedural Guidelines for Reporting of Suspicious Transactions relating to Money Laundering and Terrorist Financing, Financial Intelligence Unit, Grenada.