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Verifying Donors and Origins of Charitable Funds with Identity Verification


Trustees should undertake more due diligence to fulfil their duty of care and avoid risks. The following studies illustrate the fact that donors are at the surge to take advantage of the charity sectors for their personal means.

Charity Commission Enquires Unregistered Appeal in Iraq 

An unregistered appeal was inquired by the Charity Commission mainly to provide medical care to the people of Iraq. The commission had to be certain whether the funds created are as per the United Nations Oil-for-Food program and if so, to institute the licit report of those funds and to inspect the extent to which the trustees of the charity executed their duties in accepting those funds. 

After an in-depth evaluation, the commission established that the charity had received funds linked with unusual transactions made under the UN Oil-for-Food program and that the trustees were not keen enough on their responsibilities regarding these donations. 

The charity trustees were aware of the sanctions set on Iraq and the UN Oil-for-Food program. The commission’s sole concern was that the charity organizations should have been exceptionally vigilant in receiving these donations. 

Regulatory Take on Protecting NPOs and Charities

Global regulatory authorities have taken strict jurisdictions against money laundering and terrorist financing. The FATF and other intergovernmental authorities are working effortlessly to establish laws exempting financial crimes. Here are regulatory updates of different countries:


Australian Charities along with the Non-for-Profit Commission is the prime regulator of national charities and NPOs. It has warned people against charity fraud and advised charities to remain vigilant. 

ACNC has declared ML/TF as potential threats to the NPOs and asked the organizations to incorporate the best possible KYD and AML measures to counter these risks.


The Canadian government has also stated that charity sectors are highly vulnerable to monetary crimes and financial scams. The Office of Consumer Affairs is the prime regulator responsible for monitoring crimes in NPOs and charity organisations. 

People are advised to contact the Canadian Anti-Fraud Call Center if suspicious donations occur.  


As per German legislation, all charity sectors and NPOs must submit detailed information about the donors and report about how they spend the funding to law enforcement authorities.

In order to cope with the in-progress money laundering by (Politically Exposed Persons) PEPs, the German government has banned politicians from running a charity organization.

Key Takeaways

Fraudsters are enthusiastic about using licit organizations such as charities to assist their unlawful incomes into the legitimate system. Therefore, every welfare needs suitable services to screen its organizations for monetary crimes. 

Shufti Pro’s identity verification solutions can help in identifying the authentic identities of benefactors through facial recognition and document verification. Powered by thousands of AI models, Shufti Pro’s Know Your Donor solution promises fraud-free operations in charities and NPOs.

Shufti Pro’s Anti-Money Laundering (AML) screening solution performs background checks with access to over 1700 global watchlists. The system generates output in seconds with ~99% accuracy.

Want to learn more about Shufti Pro’s fraud prevention solutions?


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