Nonprofits are under growing pressure to vet grantees, partners, and donors to meet global AML standards. This article outlines key KYC and KYB expectations in the U.S., UK, EU, Canada, and Australia – and shows how iComply enables automated risk screening without disrupting trust or operations.

Global AML rules are expanding—and nonprofits must ensure their programs and funds are not diverted for criminal or terrorist use.

Emerging AML Obligations for Nonprofits

United States

• Regulators: FinCEN, IRS, Department of State
• Requirements: Due diligence on foreign grantees, donor vetting, sanctions screening, and enhanced scrutiny of transactions involving high-risk countries

United Kingdom

• Regulators: Charity Commission, HMRC
• Requirements: Financial controls, PEP and sanctions screening, and governance reviews for organizations handling overseas grants

European Union

• Regulators: National charity bodies, AML authorities
• Requirements: UBO transparency, transaction monitoring, GDPR-compliant due diligence, and STR obligations

Canada

• Regulator: CRA, FINTRAC
• Requirements: Anti-terrorist financing controls, donor due diligence, reporting obligations, and foreign activity reviews

Australia

• Regulator: ACNC, AUSTRAC
• Requirements: AML/CTF compliance for overseas programs, sanctions compliance, and source-of-funds transparency

Challenges Nonprofits Face

1. Resource Constraints
Small compliance teams, tight budgets, and limited infrastructure

2. Complex Grant Networks
Sub-grantees, international affiliates, and in-country partners with limited transparency

3. Donor Sensitivity
Trust and confidentiality must be preserved during verification

4. High-Risk Regions
Operations often focus on areas with elevated AML or sanctions risk

iComply: Mission-Aligned AML Tools for Nonprofits

iComply offers a lightweight, privacy-respecting AML platform that supports risk screening and verification across the nonprofit ecosystem.

1. KYC + KYB for Partners and Grantees

• Verify local nonprofits, vendors, and individuals with document and registry checks
• Onboard stakeholders using multilingual, mobile-ready portals
• Collect declarations, signatures, and supporting documentation securely

2. Sanctions and Risk Screening

• Screen partners and donors against OFAC, EU, UN, and national sanctions lists
• Apply configurable thresholds and refresh cycles
• Automate PEP/adverse media checks without storing unnecessary PII

3. Privacy-First Infrastructure

• Data processed on-device before transmission
• Full compliance with PIPEDA, GDPR, and local privacy laws
• Configurable consent workflows and retention schedules

4. Case Management and Reporting

• Assign compliance reviews and track escalations
• Export audit logs for internal governance or third-party funders
• Maintain a defensible trail of due diligence

Case Insight: Charitable Gifting Platform

A Canadian-registered charitable gifting platform operating across North America adopted iComply to manage grantee and partner due diligence. Results:

• Screened 60+ partners in under 4 weeks
• Flagged one entity with prior sanction exposure
• Increased trust with a major foundation through automated compliance

The Bottom Line

Doing good doesn’t exempt you from doing due diligence. Nonprofits that integrate smart, mission-aligned compliance tools can:

• Meet funder and regulatory expectations
• Maintain operational focus
• Build donor and partner trust

Talk to iComply to learn how we help nonprofits automate global AML screening – without sacrificing impact or transparency.