The Institute of Singapore Chartered Accountants (ISCA) will partner the Office of the Commissioner of Charities (COC) to offer subsidised services for charities in Singapore to help enhance their anti-money laundering (AML) and countering the financing of terrorism (CFT) capabilities.
This initiative will be led by a Charities AML/CFT Services Panel set up by ISCA, comprising accounting firms Forbis Accounting, InCorp Global and Unity Assurance.
Minister for Culture, Community and Youth and Second Minister for Law Edwin Tong announced the initiative at Charity Governance Conference 2024 on Oct 2.
According to an ISCA announcement, charities can approach the panel members for support in conducting due diligence checks, identify potential risks and provide interpretation of the screening results.
They can also receive support in the drafting and implementation of AML/CFT policies and procedures at a “low bono fee”.
Digital transformation initiative
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ISCA launched in October 2023 the Community Accounting Programme, in partnership with the Office of COC and the National Council of Social Service. The programme is designed to accelerate the digital transformation of charities, particularly those with limited resources.
The programme targets to support more than 50 charities and non-profit organisations by end-2024. A pilot programme concluded in March with three charities receiving help in digitalising their accounting and finance processes.
Fo Guang Shan (Singapore), a Buddhist organisation, benefitted from a transition to Xero, a cloud-based accounting solution, supported by Singapore Corporate Services.
According to ISCA, the transition allowed the charities to automate manual tasks, retrieve supporting documents easily, as well as obtain up-to-date and accurate information for cash flow planning. This has improved the charity’s financial operations for better accountability and governance, adds ISCA.
Professor Ang Hak Seng, chairman of ISCA Charity Accounting Committee, says: “ISCA is committed to making an impact in the charities sector by working hand-in-hand with COC. Together, we aim to strengthen charities’ governance through initiatives like provision of AML risk consultancy, AML know-your-donor screening services, as well as our Community Accounting Programme.”
These initiatives help protect charities from money laundering threats, adds Ang, while automation of finance processes helps enhance transparency and accountability. “As the national accountancy body, ISCA is happy to serve as a platform to enable ISCA members to contribute meaningfully and be able to make a lasting difference in the community.”
Desmond Chin, the Commissioner of Charities, says: “We are pleased to partner ISCA to enhance the financial governance and resilience of our charity sector. The Charities AML/CFT Services Panel will provide charities with the tools and knowledge to strengthen their AML/CFT measures. We will continue working together with our partners to foster a culture of transparency and accountability to strengthen public trust in charities.”
