Donor and Anti-Financial Crime policy

OVERSEAS AID ALLIANCE

DONOR IDENTIFICATION AND ANTI-FINANCIAL CRIME POLICY

(reviewed and updated November 2023)

  • Is the donor known to OAA and is there an established relationship with them?
  • Do any additional identity checks need to be made? (e.g. proof of ID, internetsearch, check with another regulatory body etc)
  • Are they UK taxpayers, and can Gift Aid be claimed?
  • If Gift Aided, does the donation fail the 3 tests, in which case it is a tainted charitydonation? The tests establish whether the person or linked person or entity gains a financial advantage from the donation; whether one of the main or sole purposes is to obtain a financial advantage directly or indirectly from the charity for the donor or linked person; and the donor is not a wholly owned subsidiary of the charity or a ‘relevant housing provider’.
  • In what form is the money being received? Cash, cheque, bank transfer?
  • Have any public concerns been raised about the donors or their activities? If so,what was the nature of the concerns and what was the outcome?
  • How big is the donation? Is it a single donation, or one of a series of donations?
  • Is the donation one of a series of interest-free loans from sources that cannot
  • Is it in anyway unusual or is it a substantial one-off donation?
  • Does the donation come with any conditions attached? What are they?
  • Is there a condition that funds are only to be retained by the charity for a periodand then returned to the donor, with the charity retaining the interest?
  • Is the donation conditional on particular persons being used to apply the funds?
  • Is the donation conditional on being applied to benefit a particular third party orparticular individuals either directly or indirectly?
  • Is the donation in sterling or another currency, perhaps with a requirement thatthe donation be returned in a different currency?
  • Are any of the donors based, or does the money originate, outside the UK? If so,from which country? Does this country/ area pose any specific risks?
  • Are any donations being received from unknown bodies or international sourceswhere financial regulation or the legal framework is not rigorous?
  • Is the donation received from a known donor but through an unknown party oran unusual payment mechanism?
  • Is anything else unusual or strange about the donation?
  • What trustees should do if they are suspicious;
  • If due diligence checks reveal evidence of crime, trustees must report the matter to the police and/or other appropriate authorities.
  • If the trustees have reasonable cause to suspect that a donation is related to terrorist financing, they are under specific legal duties under the Counter- Terrorism Act to report the matter to the police. In the case of money laundering, reports can be made to the police, a customs officer (HMRC), or an officer of the National Crime Agency.
  • Such issues should be reported to the Charity Commission under the reporting serious incidents regime, especially if significant sums of money or other property are donated to the charity from an unverified source. This could include an unusually large one-off donation or a series of smaller donations from a source you cannot identify or check. The commission would expect trustees to report any such payment (or payments) totalling £25,000 or more.
  • Check the donor against the consolidated lists of financial sanctions targets and proscribed organisations.
  • Consider whether to refuse the donation.

ANTI-FINANCIAL CRIME POLICY – SUMMARY: 

Our anti-financial crime policy is designed to prevent the risk of any of our activities being used for criminal purposes especially in any dealings we might have with international partners overseas. It is largely incorporated into the governance and due diligence clauses within our Constitution particularly those relating to financial matters and risk mitigation. Whenever possible our strategy is to minimise such risks by working with ‘affiliated’ charitable organisations who, like us, are registered with the UK charity commission. 

Our anti-financial crime policy in keeping with all our policies is reviewed annually to ensure that it remains compliant with legislation and that it still addresses the appropriate level of risk.