• Skip to content
  • Skip to navigation

Grant Thornton Australia

Grant Thornton uses cookies to monitor the performance of this website and improve user experience.

If you are happy to accept cookies from this site, please check the box.

To find out more about cookies, what they are and how we use them, please see our privacy notice, which also provides information on how to delete cookies from your hard drive.

How to be COVIDSafe when visiting Grant Thornton offices. Find out how

Global site
  • Global site
  • Algeria
  • Botswana
  • Cameroon
  • Egypt
  • Ethiopia
  • Gabon
  • Guinea
  • Kenya
  • Libya
  • Malawi
  • Mauritius
  • Morocco
  • Nigeria
  • Namibia
  • Senegal
  • South Africa
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe
  • Anguilla
  • Antigua
  • Argentina
  • Aruba, Bonaire, Curacao and St. Maarten
  • Bahamas
  • Barbados
  • Bolivia
  • Brazil
  • British Virgin Islands
  • Canada LLP
  • Canada RCGT
  • Cayman Islands
  • Chile
  • Colombia
  • Costa Rica
  • Dominica
  • Ecuador
  • El Salvador
  • Grenada
  • Guatemala
  • Honduras
  • Mexico
  • Montserrat
  • Nicaragua
  • Panama
  • Paraguay
  • Peru
  • Puerto Rico
  • St Kitts
  • St Lucia
  • St Vincent and the Grenadines
  • Trinidad & Tobago
  • United States
  • Uruguay
  • Venezuela
  • Turks & Caicos
  • Afghanistan
  • Australia
  • Bangladesh
  • Cambodia
  • China
  • Hong Kong
  • India
  • Indonesia
  • Japan
  • Korea
  • Malaysia
  • Mongolia
  • Myanmar
  • New Zealand
  • Pakistan
  • Philippines
  • Singapore
  • Taiwan
  • Thailand
  • Vietnam
  • Albania
  • Armenia
  • Austria
  • Azerbaijan
  • Belarus
  • Belgium
  • Bosnia and Herzegovina
  • Bulgaria
  • Channel Islands
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Georgia
  • Germany
  • Gibraltar
  • Greece
  • Hungary
  • Iceland
  • Ireland
  • Isle of Man
  • Israel
  • Italy - Bernoni
  • Italy - Ria
  • Kazakhstan
  • Kosovo
  • Kyrgyzstan
  • Latvia
  • Liechtenstein
  • Lithuania
  • Luxembourg
  • Macedonia
  • Malta
  • Moldova
  • Monaco
  • Netherlands
  • Northern Ireland
  • Norway
  • Poland
  • Portugal
  • Romania
  • Russia
  • Serbia
  • Slovak Republic
  • Slovenia
  • Spain
  • Sweden
  • Switzerland
  • Tajikistan
  • Turkey
  • Ukraine
  • UK
  • Uzbekistan
  • Bahrain
  • Egypt
  • Jordan
  • Kuwait
  • Oman
  • Qatar
  • Saudi Arabia
  • United Arab Emirates
  • Yemen
  • Lebanon
Grant Thorton Logo

Grant Thornton Logo Grant Thornton Logo

Contact us
  • Insights
  • Services
  • Industries
  • Meet our people
  • Careers
  • News centre
  • Locations
  • About us
  • Audit
  • Tax
  • Private Advisory
  • Financial Advisory
  • Grant Thornton Consulting
  • Asia
Audit Home
  • Audit methodology
  • Audit technology
  • Financial reporting advisory
Tax Home
  • Corporate tax
  • Employee equity reward schemes
  • Fringe benefits tax
  • Global mobility services
  • GST & indirect tax
  • International tax
  • Payroll assurance
  • Research & development
  • Tax compliance
  • Tax governance & risk management
  • Tax in mergers & acquisitions
  • Tax lawyers
  • Transfer pricing
Private Advisory Home
  • Family Business Consulting
  • Family office services
  • Private wealth
  • Superannuation
Financial Advisory Home
  • Corporate finance
  • Debt advisory
  • Forensic consulting
  • Payments advisory
  • Restructuring advisory
Grant Thornton Consulting Home
  • Business risk
  • Human capital
  • Performance improvement
  • Strategy & growth
  • Technology consulting
  • GNC Group Consulting
Asia Home
  • China practice
  • India practice
  • Japan practice
  • Agribusiness, food & beverage
  • Automotive dealers
  • Education
  • Energy & resources
  • Financial services
  • Health & aged care
  • Life sciences
  • Manufacturing
  • Not for Profit
  • Professional services
  • Public sector
  • Real estate & construction
  • Retail & consumer products
  • Technology & media
Agribusiness, food & beverage Home
Bite Size Dealtracker Food, Beverage & Agribusiness industry insights
Key insights for the Australian Food, Beverage & Agribusiness industry.
Financial services Home
  • Banking
  • Fintech
  • Private Health Insurance
  • Superannuation
  • Asset management
  • BEAR FAQs
  • Open banking
Royal Commission wrap up Top 10 things for Financial Services providers
Eleven months on from the first round of hearings for the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, Commissioner Hayne’s final report has been released.
Health & aged care Home
Aged Care Royal Commission Perspectives on the Future of Ageing
Transitions in ageing are not consistent and systematic as they are described by our ageing systems. Sometimes they are incremental, sometimes accidental, sometimes monumental, and they are always personal. We can create something better.
Life sciences Home
Biotechnology Industry Position survey Australia's biotechnology industry drives economic growth
The 2019 Biotechnology Industry Position survey conducted by Ausbiotech and supported by Grant Thornton has revealed that new technologies across regenerative medicine and medicinal cannabis are disrupting the industry, and Australia's global strength in clinical trials continues to drive contributions to the economic and social fabric of the country.
Manufacturing Home
mid-sized business report Manufacturing is critical to our economy – how can we support the sector?
Although the knock-on effects of the Australian automotive industry exiting our country are yet to be fully understood, the industry is evolving, and manufacturing continues to be a major employer and critical to our overall economy.
Not for Profit Home
NATIONAL OUTCOMES MEASUREMENT PROGRAM A practical framework
Royal Commissions and federal budgets are critical things for Nonprofit human service providers to be thinking about at this point in time.
Real estate & construction Home
mid-sized business report Supporting affordable housing requires planning, certainty – and tax reform
There is a lot of noise around the property sector at the moment – and it’s not all positive. Prices are down – but this shouldn’t be a surprise when some markets (namely Sydney & Melbourne) saw unprecedented hikes in recent years.
Retail & consumer products Home
GNC Group Consulting The Technology Trap: Online innovation in retail
I recently attended the NRF Retail Big Show in New York, an overwhelming smorgasbord of retail technology and new store concepts.
Technology & media Home
  • Telecommunications
Scaling-up for Growth From start-up to scale-up
Navigating the complexities of growth and maintaining previous success is a challenge for all mid-size businesses.
  • Working at Grant Thornton
  • Student opportunities
  • Experienced careers
  • Contact us
Working at Grant Thornton Home
  • Flexibility
  • Your career and development
  • Diversity and inclusion
  • In the community
  • What we offer you
Student opportunities Home
  • Graduates
  • Vacationer Program
  • The application process
  • FAQs
  • Student application tips and tricks
Experienced careers Home
  • Client spotlight
  • Grant Thornton Australia | Audit, Tax and Advisory
  • Client alerts
  • 2015
  • Fraud in focus: Increasing risks of financial crime impacting Australian charities and Not for Profits
  • Fraud in focus: Increasing risks of financial crime impacting Australian charities and Not for Profits - Reports & increasing risks of financial crime

Fraud in focus: Increasing risks of financial crime impacting Australian charities and Not for Profits - Reports & increasing risks of financial crime

13 Aug 2015
  • 2015
  • Transitioning support for auto supply chain companies
  • Innovation in Australia
  • New FBT entertainment cap introduced
  • New reporting obligations for multinational companies
  • Unlocking super
  • The truth behind business failure
  • 2015 Distinguished Family Business of the Year
  • Melbourne plan refresh: The 2050 metropolitan planning strategy
  • Tax alert: GST & remote housing accommodation
  • The Federal Government's Tax discussion paper released today
  • New fees hurt developers’ bottom line
  • Payroll Tax Rebate – Action before 23 November 2015
  • New South Wales State Budget 2015-16
  • Western Australian Real estate & construction update
  • Victoria Real estate & construction update
  • South Australia Real estate & construction update
  • Queensland Real estate & construction update
  • New South Wales Real estate & construction update
  • State revenue offices and the ATO information sharing
  • Redundant corporate entities?
  • Streamlined process for new business applications
  • Imported building materials under scrutiny
  • Tightened lending rules threaten industry growth
  • Any GST hike must be offset
  • New PM appoints Minister for Cities
  • Reforming Australia’s Federation and Tax System
  • A message from our Global Head of Real Estate & Construction
  • Adelaide CBD property outlook – Key considerations
  • The deadline is looming for the Exploration Development Incentive
  • Valuing Employee Share Schemes (ESS) – Impending Tax Changes
  • Queensland State Budget 2015-16
  • New restrictions on entertainment salary packaging
  • NADA conference day three
  • NADA conference day two
  • Do you have the keys to NADA 2015? Day 1
  • South Australian State Budget 2015-16
  • 27 Pay Periods in 2015/16
  • Corporate simplification and solvent liquidations
  • Fringe Benefits – Hidden FBT and deemed dividend issues
  • NSW Payroll Tax Rebate
  • SuperStream compliance
  • Should I maintain my SMSF?
  • Art and collectables as alternative investments
  • Tax alert: GST ruling published
  • Western Australian State Budget 2015-16
  • New funding opportunities for Australian food & beverage companies
  • Super fund investment choice – What are the options?
  • Nominating beneficiaries for your superannuation benefits
  • Superannuation consolidation
  • Victorian State Budget 2015/16
  • Encouraging innovation in Australia’s Life Sciences and Biotechnology industries
  • Fraud in focus: Fraud and corruption in Banking and Financial Services
  • Tax alert: Refunds of excess GST
  • New Employee Share Scheme Bill Introduced
  • SuperStream employer webinars
  • Staying vigilant against fraud
  • Tax Alert: Are you meeting your employment tax obligations?
  • Tax alert: No change to R&D tax offset rates
  • Act now to be ready for FATCA
  • Tax alert: Changes to Employee Share Scheme Tax Laws

Increasing risks of financial crime impacting Australian charities and Not for Profit

Reports and increasing risks of financial crime

ACNC Charity Compliance Report

Of the approximately 600,000 charities registered with the Not for Profit sector, 6,000 new entrants were registered between December 2012 and December 2014. A compliance report issued in June 2015 by the Australian Charities and Not for Profits Commission highlighted the risks currently facing the sector[1].

The ACNC report Charity Compliance Report December 2012 – December 2014 and beyond identifies that in those two years the most common complaints it received against charities concerned:

  • Charitable resources being used inappropriately for the private benefit of individuals controlling the charity or their associates.
  • Possible financial mismanagement and fraud within the charity.
  • Charities failing to follow their constitutions and not being transparent or accountable to members.
  • Charities that appear to be harming their beneficiaries.
  • Sham charities soliciting funds, and fundraising scams generally.

The key focus of the regulator’s compliance work for 2015/2016 will entail charities operating overseas, charities that provide private benefits to their responsible persons or associates and charities that are involved with illegal activity or tax avoidance.

Operating overseas is a significant area of increasing risk. Australia’s non-government aid and development organisations spend around $1.3 billion annually, with approximately $875 million coming from public donations. An ACNC media release dated 29 June 2015 noted that over 4,000 Australian charities operate overseas and found the risk that funds are used to finance terrorism most alarming3.

Risks associated with charities operating overseas include the payment or receipt of bribes, facilitation payments and terrorist financing. This can result in significant penalties in Australia and, subject to jurisdictional matters, the host country and other countries in which the organisation conducts business; added to which is the reputational damage, which can have a far greater impact.

AUSTRAC report – Terrorism financing in Australia 2014

Closely mirroring the ACNC findings and comments regarding risks of terrorist financing, the Australian Transaction Reports and Analysis Centre (AUSTRAC) 2014 report, Terrorism financing in Australia 2014 noted “the integrity and work of non-government organisations such as charities and humanitarian groups can be seriously undermined if they are misused as a cover for terrorism financing activity”[2]. It reported that some Australian charities have been used to raise funds for terrorist groups by:

  • Using their organisations to disguise international funds transfers to high risk regions.
  • Mixing funds for terrorism with funds for legitimate humanitarian purposes.
  • Intercepting legitimate funds either in Australia or once such has arrived overseas then diverting such for terrorism.

Anti-money laundering and counter-terrorist financing measures

In April of this year, the Financial Action Task Force (FATF) and the Asia/Pacific Group on Money Laundering (APG) together issued the Anti-money laundering and counter-terrorist financing measures – Australia – Mutual Evaluation Report.

FATF, based in Paris, is an intergovernmental body that sets standards, recommendations and measures for combating money laundering on a global scale. APG, based in Bangkok, is an international organisation working in research, policy development, education and evaluation on anti-money laundering and counter terrorist financing. Australia is a member of both bodies.

The report indicates increasing risks of financial crime impacting Australian charities and other Not for Profit organisations through money laundering and counter terrorist financing. While generally a very positive report on Australia’s response to the threat, it states that Australia has failed to comply with FATF recommendations in terms of sector-wide risk assessment, outreach to Not for Profit organisations and measures to be applied to those organisations identified as high risk[3]. The report recommended the following priority actions:

Australia should implement a targeted approach in relation to preventing NPOs (non-profit organisations) from TF (terrorist financing) abuse. As a first step, Australia needs to undertake a thorough review of the TF risks that NPOs are facing [beyond the issues already covered in the NTA (National Threat Assessment) and the potential vulnerabilities of the sector to terrorist activities.[4]



[1]  Australian Charities and Not for Profit Commission, March 2015, ACNC Charity Compliance Report December 2012 – December 2014 and beyond, accessed 4 August 2015

3 The Australian Council for International Development,

[2] Australian Transaction Reports and Analysis Centre 2014, Terrorism financing in Australia 2014, p. 5, accessed 4 August 2015

[3]  Financial Action Task Force 2015, Anti-money laundering and counter-terrorist financing measures in Australia, accessed 4 August 2015

[4] Ibid., p. 11

 

Find out more about the rising risk of fraud and corruption in the charities and Not for Profit sectors:

  • Introduction 
  • Summarising the risks
  • What to do

Fraud in focus | Increasing the risks of financial crime impacting Australian charities and Not for Profits

Download a PDF version of the article.

Read the full Fraud in focus
Download PDF [357 kb]
Download PDF [357 kb]
Download PDF [357 kb]
Share this page
  • Share this page on Facebook LinkedIn
  • Share this page on Twitter Twitter
  • Share this page on LinkedIn LinkedIn
  • Share this page on Wechat WeChat
  • Share this page via email Email
  • Follow us on youtube
  • Follow us on linkedin
  • Follow us on twitter
  • Follow us on facebook
Connectclose
  • Contact us
  • Locations
  • Meet our people
  • Subscribe
  • Staff portal
Aboutclose
  • About us
  • Careers
  • News centre
  • Client alerts
  • Grant Thornton Foundation
  • Grant Thornton Affinity
Legalclose
  • Privacy
  • Compliance and ethics
  • Disclaimer
  • Site map

© 2021 Grant Thornton Australia Limited – All rights reserved

    • EN
    • Contact us