Charities and Non-Profits Must Ensure Anti-Terrorism and Money Laundering Compliance

The Grenada government has issued new guidelines aimed at preventing charities and non-profit organizations from being misused for terrorist financing or money laundering activities. These guidelines require charities and non-profits to take necessary steps to prevent their activities from being used for illegal purposes.

Guidelines for Charities and Non-Profits

According to the guidelines, charities and non-profits are required to:

• Conduct thorough due diligence on donors, including verifying the nature and purpose of donations.
• Identify any conditions attached to donations and ensure they do not violate anti-terrorism or money laundering laws.
• Report any suspicious activity to the Financial Intelligence Unit (FIU).
• Comply with minimum standards set by the guidelines.
• Adopt higher standards and internal controls based on risk-based methodology.

Responsibilities of the Financial Intelligence Unit

The FIU is responsible for receiving and investigating reports of suspected terrorist financing or money laundering activities. It must:

• Keep a record of all reports received
• Provide acknowledgement to the reporting entity

Consequences of Non-Compliance

Failure to comply with these guidelines may result in severe penalties, including fines and imprisonment. It is essential that charities and non-profits take these requirements seriously and implement effective anti-terrorism and money laundering measures to prevent their activities from being misused.

Conclusion

By ensuring compliance with these guidelines, charities and non-profits can play a critical role in preventing terrorist financing and money laundering activities while continuing to support their legitimate charitable goals. It is crucial that they take the necessary steps to prevent their activities from being used for illegal purposes.