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GONGO

GONGO – Government Owned NGOs.

Money laundering is shifting from little nits deposited into accounts to larger and larger sums moving under the colors of governments.

The biggest offenders have been Government Owned, NGOs. As these enterprises are government-owned they are exempted from much of the due diligence and AML requirements.

In recent cases we have seen increased use of GONGOs being used to move payments for influence, bribes, evade taxes and criminal activity involved in smuggling.

A recent matter was watching 4.1 million go to an NGO for affordable housing. Of this, zero went to affordable housing. Most of it went to admin and salaries to a man and his daughter and their travel. It seems it was a good way to channel money for influence.

All charities and NGOs must undergo enhanced due diligence. If these entities are doing good deeds – have them show you what they are doing. If they baulk – run from them.

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