Jar with coins in it with yellow label that says 'charity'


A new report by Australia’s financial intelligence agency, AUSTRAC, and the Australian Charities and Not-for-profits Commission (ACNC), identifies significant risks for non-profit organisations in relation to money laundering and terrorism financing.

The report, Australia’s non-profit organisation sector: money laundering and terrorism financing risk assessment, is the first of its kind in Australia. It found that the risk level for both money laundering and terrorism financing is “medium”.

ACNC Commissioner Susan Pascoe AM highlighted the risks facing Australian charities.

“Charities are crucial in getting funds into conflict zones and other unstable regions, and this is not without heightened risk.

"All charities, whether they operate domestically or internationally, must understand money laundering and terrorism financing (ML/TF) risks, and ensure they have robust risk-based governance practices to prevent criminal misuse,” Ms Pascoe said.

The report shows that Australian NPOs can better manage money laundering and terrorism financing risks through good governance, an understanding of risks, strong internal controls, and good accountability.

The assessment also identified the common characteristics of NPOs at higher risk of being misused for terrorism financing.

pdfDownload Australia’s non-profit organisation sector: money laundering and terrorism financing risk assessment

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