Whenever there is a natural disaster, money launderers correctly take advantage of the urgent need for charitable relief to send illicit funds, masquerading as aid money, to the affected area. How does one separate the wheat form the chaff ? By remembering these simple tips when examining a charitable organisation that pops up after a disaster, and desires to utilise your bank to send funds to the scene:
- Is the charity recognised, and does it have a longstanding record of good works ? Newly-formed charities could have been organised purely for criminal reasons. Check out the NGOs record.
- Has the charity have the requisite approval from governmental agencies, allowing contributors to take tax deductions for their payments ? Since this typically takes at least a short period to receive agency approval, this could indicate a “fly by night” operation. Also, if the charity is not approved for donations, just how did it obtain its funding ? Good questions.
- Is the leadership composed of individuals known to be linked to charitable organisation in the past ? Often, World-Checking the leaders turns up turns up someone with a “colourful,” or even criminal, past.
- Is the charity asking you to take shortcuts, or to fast-track their payments, due to the urgent needs of the intended recipients ? If this ploy is coupled with any of the red flags listed above, you should stop, and perform enhanced due diligence, before moving funds for this new client. You may wish to avail yourself of the services provided by World-Check IntegraScreen* for that purpose.
Remember, whilst the great majority of well-intentioned charitable organisations deserve your immediate assistance in speeding aid to the victims in Japan, if any of these red flags appear, it is due diligence time.
– Kenneth Rijock, Financial Crime Consultant for World Check
