Fraudulent Charities Busted: Financial Intelligence Centre Uncovers Shocking Scams

The Financial Intelligence Centre (FIC) has revealed a series of fraudulent charities that have been fleecing donors out of millions. These scammers, posing as charitable organizations, use false pretenses to solicit funds from unsuspecting individuals and institutions.

Case Studies: Fraudulent Charities Exposed

Case 1: Residential Child Facility Scam

In one brazen scheme, a suspect claiming to be the owner of an unregistered residential child facility allegedly solicited NAD 80,000 from the American Embassy under false pretenses. The funds were deposited into the suspect’s personal account, where they were squandered for personal gain.

Case 2: Prophetic Healing and Deliverance Ministries

In another shocking case, a Zimbabwean national in Namibia received an unknown amount of funds and subsequently transferred NAD 104,000 to the Prophetic Healing and Deliverance Ministries in South Africa. The purpose of the transfer remains unclear.

Case 3: Mosque Account Suspected of Financing Terrorism

Furthermore, the FIC has discovered that a mosque’s account is suspected of being used to finance terrorism in the Middle East. The investigation is ongoing.

FIC Warns Donors: Be Cautious

In response to these shocking revelations, the FIC is urging donors to exercise extreme caution when giving to charitable organizations. “Donors must be vigilant and do their due diligence before handing over their hard-earned cash,” said a spokesperson for the FIC.

The FIC has developed a risk rating system to help identify vulnerable charities. The system categorizes NPOs into low, medium, or high-risk based on factors such as transparency, governance, and financial reporting.

Low-Risk Charities

• Have explicit charitable purposes
• Disclose how funds are used with specificity
• Have written grant agreements with effective safeguards

Medium-Risk Charities

• Have general charitable purposes and disclose how funds are used with specificity
• Have written grant agreements with limited safeguards

High-Risk Charities

• Lack transparency in their financial reporting and governance structures
• May have unclear or no charitable purposes

Donors can use this system to identify high-risk charities and avoid falling prey to fraudulent schemes.

FIC Tips for Donors

1. Research the charity’s reputation and history.
2. Verify the charity’s registration with the relevant authorities.
3. Review the charity’s financial reports and governance structure.
4. Check if the charity has a written grant agreement with effective safeguards.
5. Be wary of charities that do not disclose how funds are used.

Staying Vigilant, Staying Safe

Remember, when it comes to giving to charity, caution is key. Always do your due diligence and research the organization before handing over your hard-earned cash. By doing so, you can help prevent fraud and ensure that your donations make a real difference in the lives of others.

The FIC is committed to protecting donors from fraudulent charities and ensuring that their contributions make a positive impact on society.