Due to the $2.8 Billion Money Laundering Case, Charities Now Urged to Review Donor Records Since Jan 2019

Donating money to charity is a good thing. After all, you get to help other people with the extra that you have.

But what do you do when the person who donates gets that money from an “unclean” source?

Taking the money from the person potentially condones obtaining money through nefarious means, such as money laundering.

Not taking that money may mean those who need certain necessities do not get what they need.

And let’s not start with the complex thing about what to do with donations from nefarious sources used before their “unclean” background was uncovered.

Given that some of the donations to local charities have been from individuals linked to the $2.8 billion money laundering situation uncovered in Singapore, there has been talk about what to do with those donations.

Now, charities are being urged to review their donations from 2019.

Here is more on what is happening after the money laundering case broke out.

Charities Are Urged to Review Their Donation Records From January 2019

Just this week, The Straits Times reported that the Commissioner of Charities (COC) has urged charities in Singapore to review their donor records.

The paperwork to be reviewed should extend all the way back to January 2019.

What’s the purpose of this review?

To put things simply, the charities are to look out for donations from individuals linked to the $2.8 billion money laundering situation unfolding on our island.

The Straits Times said that the COC’s advisory said charities should “file suspicious transaction reports if they have reasonable grounds to suspect that any cash or in-kind donations may be connected to any criminal activity”.

There was also a list of people to look out for as donors for flagging.

To hammer home the point, the COC also told charities that receiving donations from those who were flagged out should “carefully consider” what actions to take for those donations since there are potential legal and reputational risks if the charity in question accepted the donations from those suspicious individuals.

Some Local Charities Had Been the Beneficiaries of Money Donated by Individuals Linked to Money Laundering Case

Why the sudden interest in looking for such charity donations?

It seems several local charities have been the beneficiaries of donations from people linked to the money laundering scandal.

This means that the donated money could have been laundered, which is not what Singapore wants to stand for.

So far, Rainbow Centre has confirmed that it received $72,450 from three of the ten accused linked to the case (as reported by The Straits Times).

The Community Chest, the National Kidney Foundation, Lions Befrienders and the President’s Challenge are some other charities that have allegedly received money from “unclean” sources.