Stop channelling charity to terrorists

E. Anthony WAYNE

ABUSING CHARITY: By nature, people want to help their less fortunate neighbours. They respond generously when asked to contribute to those in need. Unfortunately, some have sought to turn these noble sentiments into support for terrorism.

Over the past several years, terrorist groups have abused some charitable organizations by diverting a portion of donated funds to pay for terrorists' recruiting and training efforts, as well as attacks around the world.

Most donors are unaware of this abuse, but it undermines the integrity of the charitable sector and deprives legitimate beneficiaries of receiving needed funds.

Now is the time to step up measures to ensure that charitable donations go to the intended recipients.

Governments can help to protect those who donate to charities by regulating charitable organizations in a way that facilitates, rather than hinders their noble work. Reasonable requirements for disclosure and accounting transparency, and providing guidance for charities, can better safeguard their legitimate work.

Fund managers can ensure that sub-contractors and downstream managers of charitable funding are not associated with terrorist organizations. Donors may ask to see the accounting records of their favourite charities, to verify the beneficiaries of their contributions.

In the United States, the Treasury Department and the domestic charitable community are working closely together to ensure both the provision of essential services around the world and the satisfaction of national security concerns.

In addition to other guidance, Treasury's publication, Anti-Terrorist Financing Guidelines, Voluntary Best Practices for U.S.-Based Charities, provides a targeted, risk-based approach for protecting charitable giving.

A number of countries around the world are investigating financial flows to various charitable organizations in South Asia. The United States has been working closely with Sri Lanka to monitor and deter terrorist financing.

Most recently, we have provided an advisor from the U.S. Treasury Department to help with implementing the recently passed anti-money laundering legislation and with the establishment of a Financial Intelligence Unit, which will work with banks and other entities to track suspicious transactions.

Sri Lanka has been at the forefront of the war on terror for some time and has also developed an extensive network of local and international charities that support good causes throughout the country. Ensuring that these entities continue to support legitimate projects and opportunities is important.

For those organizations whose work seems to skirt the line between humanitarian projects and support for illicit activities, it is imperative that these organizations adopt transparent accounting and oversight standards if they wish to continue to attract legitimate donations.

If an organization crosses the line, action should be taken, but that action must be based on firm evidence, not just accusation.

The international community is also taking steps to ensure that charitable donations are spent for the benefit of the legitimate designated recipients.

The United Nations' agencies are stepping up their vigilance so that humanitarian and other assistance is not awarded to contractors and alleged non-profit organizations that are listed on the UN's own sanctions list for their association with Al Qaida, Usama bin Laden, or the Taliban.

The multilateral Financial Action Task Force (FATF)'s Special Recommendation VIII calls upon governments to take measure to investigate and regulate charities in order to avoid their abuse by terrorist organizations.

Many countries have or are in the process of establishing charities commissions and other regulatory bodies to oversee charities.

More needs to be done. Charitable giving is extolled by religions and cultures throughout the world. Helping those less fortunate is an integral part of the practice of major religions.

Internationally, the amounts of private charitable contributions are rising, to the point that they dwarf official government donations. This giving is invaluable to disaster relief and to development in many countries.

We hope the generosity of private donors will continue to grow. But, for that to happen, we must all take steps to stop even the suspicion of abuse of charities by terrorist organizations and reclaim the blessings of charitable giving.

(E. Anthony Wayne is U.S. Assistant Secretary of State for Economic, Business and Agricultural Affairs.)