During the summer of 2007, two trials under anti-terrorist financing laws -- both involving charities -- made headlines. CPAs who work in the nonprofit and private foundation sectors should be aware of the federal anti-terrorist financing rules. Accountants are well positioned to provide advice regarding compliance in this area. Compliance requires awareness of the relevant rules and regulations as well as how the laws and rules apply to specific activities. As a first step, nonprofits should check potential foreign grantees against the list. The nonprofit should have written procedures for what to do when an SDN name-check reveals that a potential payee is on the list. All charities should account for all funds received and disbursed. The names of all grantees should be recorded and, to the extent possible, disbursements should be made by check or wire transfer.
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