Non-profits at the Crossroads of Accountability: the Impact of Beneficial Ownership and Financial Oversight on Global Charity Operations
Year: 2025
Type: article
Abstract: This article explores the critical issue of beneficial ownership transparency in non-profit organizations, highlighting a significant regulatory gap that allows non-profits to operate without the same disclosure requirements as for-profit entities. This lack of transparency makes these organizations vulnerable to misuse for illicit activities, including money laundering, terrorist financing, and fraud. The article compares global regulatory approaches with the United States Corporate Transparency Act and the European Union's Anti-Money Laundering Directives, offering differing standards. Through case studies, the article illustrates how the absence of beneficial ownership reporting has led to financial misconduct within prominent non-profit organizations. It argues for developing tailored compliance solutions for these organizations, emphasizing the need for a balance between transparency and privacy, and recommends closing the regulatory gap and fostering international cooperation. The article concludes that a robust compliance framework is needed to safeguard the integrity and trust of the non-profit sector.
Source: Revista Contemporânea
DOI: 10.56083/rcv5n3-005
Language: English
Subfield: Sociology and Political Science
Field: Social Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4408220660