Anti-money laundering fight reaches charities

Link: FATF issues revised anti-laundering standard

Indeed, in certain cases, its advice warns, charities have been ‘a mere sham that existed simply to funnel money to terrorists’. However, this double-dealing was unknown ‘without the knowledge of donors, or even members of the management and staff’ due to terrorist moles in the charity ‘diverting funding on their own’.

The paper gives three case studies, one of which involves the creation of a charitable foundation in an unnamed country attached to a new mosque, supposedly built for the local community, but actually lodging ‘clandestine “travellers” from extremist circles’.

The foundation was established to receive millions of dollars of donations ‘without attracting the attention of local authorities’ with one leader making a ‘number of trips to Afghanistan and the US’. Investigators ‘suspect part of the proceeds’ were used by terrorists, said the paper.