Money laundering and terrorism financing risks to Australian non-profit organisations

Samantha Bricknell, Rob McCusker, Hannah Chadwick, David Rees

    Research output: Book/ReportOther reportResearch

    Abstract

    The exploitation of the non-profit sector for money laundering and, in particular, the financing of terrorism, is understood to have been a long-established practice. However, the methods and sources used by terrorist organisations to finance their activities became a key policy focal point after the terrorist attacks of 11 September 2001 and subsequent (predominantly government) examinations of terrorism funding substantiated the position that non-profit organisations were at an elevated risk of criminal exploitation. The vulnerability of non-profit organisations was related to their social purpose, the cash-intensive nature of their activities and the generally minimal form of regulatory oversight applied to their operations. Adding to this risk was the provision of services that relied on financial contributions and the good will of its supporters, the often regular transmission of funds between jurisdictions and less rigorous forms of administrative and financial management. This report examines the risks to the Australian non-profit sector of money laundering and terrorism financing and describes the regulatory changes that could minimise risk. The report uses information derived from government, non-government and peer-reviewed literature, case law and regulator reports, and observations made by representatives from the non-profit sector, law enforcement and key regulatory agencies, and academia that were consulted for the study.
    Original languageEnglish
    PublisherAustralian Institute of Criminology
    Publication statusPublished - 2011

    Publication series

    NameResearch and public policy series
    PublisherAustralian Institute of Criminology
    Volume114

    Fingerprint

    money laundering
    non-profit-organization
    non-profit sector
    terrorism
    exploitation
    financial management
    September 11, 2001
    case law
    law enforcement
    jurisdiction
    finance
    vulnerability
    funding
    examination

    Bibliographical note

    The exploitation of the non-profit sector for money laundering and, in particular, the financing of terrorism, is understood to have been a long-established practice. However, the methods and sources used by terrorist organisations to finance their activities became a key policy focal point after the terrorist attacks of 11 September 2001 and subsequent (predominantly government) examinations of terrorism funding substantiated the position that non-profit organisations were at an elevated risk of criminal exploitation. The vulnerability of non-profit organisations was related to their social purpose, the cash-intensive nature of their activities and the generally minimal form of regulatory oversight applied to their operations. Adding to this risk was the provision of services that relied on financial contributions and the good will of its supporters, the often regular transmission of funds between jurisdictions and less rigorous forms of administrative and financial management. This report examines the risks to the Australian non-profit sector of money laundering and terrorism financing and describes the regulatory changes that could minimise risk. The report uses information derived from government, non-government and peer-reviewed literature, case law and regulator reports, and observations made by representatives from the non-profit sector, law enforcement and key regulatory agencies, and academia that were consulted for the study.

    Cite this

    Bricknell, S., McCusker, R., Chadwick, H., & Rees, D. (2011). Money laundering and terrorism financing risks to Australian non-profit organisations. (Research and public policy series; Vol. 114). Australian Institute of Criminology.
    Bricknell, Samantha ; McCusker, Rob ; Chadwick, Hannah ; Rees, David. / Money laundering and terrorism financing risks to Australian non-profit organisations. Australian Institute of Criminology, 2011. (Research and public policy series).
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    Bricknell, S, McCusker, R, Chadwick, H & Rees, D 2011, Money laundering and terrorism financing risks to Australian non-profit organisations. Research and public policy series, vol. 114, Australian Institute of Criminology.

    Money laundering and terrorism financing risks to Australian non-profit organisations. / Bricknell, Samantha; McCusker, Rob; Chadwick, Hannah; Rees, David.

    Australian Institute of Criminology, 2011. (Research and public policy series; Vol. 114).

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    Bricknell S, McCusker R, Chadwick H, Rees D. Money laundering and terrorism financing risks to Australian non-profit organisations. Australian Institute of Criminology, 2011. (Research and public policy series).