The Charity Commission and the Metropolitan Police Service have issued a joint alert to charities urging them not send cash overseas, after an increase in charitable funds being seized at ports.
In an alert this morning the commission, in collaboration with its partner, the Counter Terrorism Command at the Metropolitan Police Service, have advised charities not to use cash couriers.
Over the last two years police have seized in the region of £4m at ports under the Proceeds of Crime Act 2002 and the Terrorism Act 2000, including from representatives of charities or from people claiming the cash was charitable.
The commission said there has been an increase in the number of enquiries from police about individuals claiming to be carrying cash for a charity.
The regulator described cash couriering as a “high risk activity” which it advises against for a number of reasons. These include because securing the return of seized cash is difficult, carrying cash makes the individual a target for criminals and that cash couriering is difficult to audit.
It said charities should try to use formal banking systems to move money across international borders where possible and only courier cash in “exceptional circumstances”.
Any loss or seizure of charity’s cash is considered a serious incident and should be reported to the commission.
‘Method known to be used by terrorists and criminals’
Michelle Russell, director of investigations, monitoring and enforcement, said: “The commission has seen an increase in the number of charities having cash seized from their fundraisers, agents and representatives at the UK border.
“The effects of a cash seizure include the charities’ beneficiaries losing out, an impact on the charities’ activities and the loss of donor money - including the permanent loss of funds.
“The commission’s advice is simple: don’t use cash couriers unless there is no other possible means of moving money - follow the regulatory advice issued today.”
Commander Dean Haydon from the counter terrorism command said: “Cash couriering is a high risk activity for any organisation or individual to undertake, and is a method known to be used by terrorists and criminals.
“My advice to all charities is to send money safely and not to use a cash courier; if you do there is a real risk that without proper documentation and a clear explanation of the source and destination of the cash, the cash will be seized by the police and ultimately lost to the charity.”
The full alert can be found here.
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