Financial Crime World

Non-Profit Organizations Must Ensure Transparency and Accountability

In a bid to prevent money laundering and terrorist financing, non-profit organizations in Grenada are being urged to adopt strict due diligence measures and maintain transparency in their financial transactions.

Anti-Money Laundering and Terrorist Financing Guidelines

According to the guidelines issued by the Financial Intelligence Unit (FIU), non-profit organizations must ensure that all donations received from individuals or entities exceeding a certain threshold are properly recorded and reported. These guidelines aim to prevent non-profit organizations from being used as a conduit for money laundering or terrorist financing activities.

Key Requirements

  • Conduct thorough background checks on donors
  • Verify the source of funds
  • Establish whether the donation is commensurate with the donor’s known sources of income
  • Report any suspicious activity to the FIU

Compliance and Internal Controls

The guidelines emphasize that all entities and professionals are required to fully comply with these minimum standards for anti-money laundering and terrorist financing measures. Non-profit organizations are encouraged to adopt higher standards and internal controls that go beyond the minimum requirements set out in the guidelines.

Duties of the Financial Intelligence Unit (FIU)

  • Reporting authority of Grenada
  • Keeping records of reports received
  • Conducting investigations into suspicious activity

Conclusion

The Anti-Money Laundering and Terrorist Financing Guidelines aim to promote transparency and accountability among non-profit organizations in Grenada, ensuring that they are not used for illegal activities. It is essential for these organizations to comply with the guidelines and adopt higher standards of internal control to maintain their reputation and credibility.

As emphasized by the FIU Director: “The imperatives outlined in these guidelines must be fully complied with by every entity and professional. The guidelines themselves must be viewed as setting minimum standards of compliance.”