Wed, Mar 19, 2014

http://www.indiawest.com/news/17673-ngos-vulnerable-to-money-laundering-terror-funding.html

With voluntary organizations receiving more than Rs. 11,500 crore ($1.9 billion) in foreign funds annually, the Home Ministry has warned that the NGOs could be vulnerable to risks of money laundering and terror financing.

In its latest annual report on receipt and utilization of foreign contribution by voluntary associations, the Home Ministry said the NGOs work independently outside the government and it is expected that they are self-regulating and law abiding.

One of the objectives of the national policy on the voluntary sector is to "encourage NGOs to adopt transparent and accountable system of governance and management.”

"While it is not proper to make sweeping generalizations, it is necessary to note that the NGO sector in India is vulnerable to the risks of money laundering and terrorist financing," the report said.

A total of 43,527 NGOs are registered under the Foreign Contribution (Regulation) Act, as of March 31, 2012.

Among the purposes for which foreign contribution was received and utilized are: rural development, welfare of children, construction and maintenance of school/college and research. Chennai-based World Vision of India received the highest amount of foreign contribution (Rs. 233.38 crore).

The five major donor countries are: the United States, U.K., Germany, Italy and the Netherlands.