Charities and Non-Profit Organizations Must Avoid Supporting Terrorism and Money Laundering
The Financial Intelligence Unit (FIU) in Grenada has issued new guidelines to ensure that charities and non-profit organizations do not inadvertently support terrorist activities or money laundering schemes. These guidelines provide a framework for these organizations to comply with anti-money laundering and anti-terrorism financing regulations.
Donation Requirements
To prevent the misuse of charitable funds, charities and non-profit organizations must establish due diligence measures to verify the identity of donors and the source of their funds. Specifically, they must:
- Verify the identity of donors and the source of their funds
- Establish the purpose of the donation and whether there are any conditions attached
- Ensure that the donation is commensurate with the donor’s known sources of income
- Conduct thorough investigations into any suspicious donations
Reporting Requirements
If a charity or non-profit organization suspects that a donation may be linked to money laundering or terrorist financing, it must report its suspicions to the FIU. The guidelines also require organizations to maintain detailed records of all transactions and donations.
Compliance Obligations
The new guidelines emphasize the importance of full compliance with anti-money laundering and anti-terrorism financing regulations. Organizations are required to adopt minimum standards of compliance, which include:
- Implementing internal controls
- Risk-based methodologies to identify and mitigate money laundering and terrorist financing risks
FIU Role
The FIU plays a crucial role in enforcing these guidelines by:
- Providing guidance and direction on suspicious activity reports concerning money laundering and terrorist financing
- Keeping records of all reports received
- Investigating suspected cases of money laundering and terrorist financing
By implementing these new guidelines, charities and non-profit organizations in Grenada can ensure that their activities are transparent and compliant with anti-money laundering and anti-terrorism financing regulations, while also helping to prevent the misuse of charitable funds for illegal purposes.