4.1.8 Terrorism concerns and legislation
In recent years, many governments have begun to demand more efforts to ensure that funds are not channelled to terrorism-among them Australia, the United States, Canada and the European Union. The focus is often on financial transparency. But demands can extend to certification, and staff and sub-contractor vetting-including against terrorist watch lists. Country Offices should check requirements with Lead Members and funding offices.
Check with your Lead member and relevant donors if there is any requirements related to due diligence or terrorism legislation. Standard procedure for CUSA offices is to conduct a “ Bridger check”. The bridger check will conduct due diligence on fraud, anti-money laundering, foreign corruption and terrorist financing. CUSA offices also often uses a due diligence tool, which is focused on assessing the financial risks of working with a potential partner.
While the capacity assessment is focusing on existing capacities, due diligence is focusing on establishing a risk rating. Due diligence (or risk) assessments should only be conducted to pre-selected partners.