Prevention of Financial Wrongdoing Policy

1. Goal

The purpose of this Prevention of Financial Wrongdoing Policy (Policy) is to:

• provide a clear statement to all relevant stakeholders that the Diplomacy Training Program (DTP) has a zero-tolerance approach towards Financial Wrongdoing;
• outline mechanisms for the prevention and detection of Financial Wrongdoing, where that Financial Wrongdoing involves DTP’s stakeholders and DTP’s funds and resources;
• assist all relevant stakeholders to understand their responsibilities for identifying, preventing and reporting suspected Financial Wrongdoing;
• provide for the investigation of suspected Financial Wrongdoing;
• ensure DTP’s reputation for practical support for human rights and sustainable development is not compromised through any association with or inadvertent support for Financial Wrongdoing;
• ensure continued community support for DTP’s capacity building programs on human rights and advocacy; and
• facilitate DTP’s compliance with the requirements of the Australian Council for International Development (ACFID) Code of Conduct . DTP has chosen to adopt the measures set out in this Policy in respect of (inter alia) Financial Wrongdoing, Money Laundering and Terrorism Financing on a voluntary basis and to comply with the ACFID Code of Conduct as a voluntary, self-regulatory sector code of good practice made by ACFID.

 

2. Definitions

In this Policy:

• ‘Bribery’ means the offering, promising, giving, accepting or soliciting of an advantage as an inducement for an action which is illegal, unethical or a breach of trust. Inducements can take the form of gifts, loans, fees, rewards or other advantages including Facilitation Payments. Within Australia, certain forms of Bribery are criminalised by the Commonwealth Criminal Code (see below).
• ‘Commonwealth Criminal Code’ means the Criminal Code in the Schedule to the Criminal Code Act 1995 (Cth).
• ‘Corruption’ means dishonest or illegal behaviour for private gain.
• ‘DFAT’ means the Australian Department of Foreign Affairs and Trade.
• ‘DTP Personnel’ means DTP directors, staff and volunteers.
• ‘Facilitation Payment’ means a small payment designed to expedite or influence a routine procedure, sometimes also referred to as a ‘grease payment’.
• ‘Financial Wrongdoing’ includes:

o Bribery;
o Corruption;
o Facilitation Payments;
o Fraud;
o Money Laundering;
o Terrorism Financing; and
o sanctions violations under the Charter of the United Nations Act 1945 (Cth) or the Autonomous Sanctions Act 2011 (Cth).

• ‘Fraud’ means dishonestly obtaining a benefit, or causing a loss, by deception or other means.
• ‘Money Laundering’ means the process of concealing the origin, ownership, or destination of illegally or dishonestly obtained money and hiding it within legitimate economic activities to make that money appear that it was not illegally or dishonestly obtained.
• ‘Terrorism Financing’ means financing or providing support intentionally or recklessly to terrorist organisations or terrorist activities, including any conduct captured by the offences set out in the Commonwealth Criminal Code.

 

3. Scope and Context

This Policy will guide the approach and actions of the DTP, through its Board of Directors, and through DTP Personnel. This Policy will be provided to them and to DTP’s partner organisations. This Policy also sets out appropriate checks and requirements in relation to DTP’s partner organisations.

This Policy applies to the forms of Financial Wrongdoing set out in the ‘Definitions’ section above. As outlined below, Australian law criminalises certain instances of Financial Wrongdoing.

Sanctions and Terrorism Financing

Support for terrorist activity is a criminal offence under Australian domestic law. The Criminal Code Act 1995 (Cth) sets out criminal penalties for providing support intentionally or recklessly by ‘getting funds to, from or for a terrorist organisation’ (section 102.6), ‘providing support to a terrorist organisation’ (section 102.7) and ‘financing terrorism’ (section 103.1).

The Charter of the United Nations Act 1945 (Cth) and the Autonomous Sanctions Act 2011 (Cth) also set out penalties for making assets available to a ‘proscribed person or entity’, a ‘designated person or entity’ or for engaging in other forms of sanctioned conduct.

Money laundering

In Australia, criminal offences concerning money laundering are set out in the Commonwealth Criminal Code and State equivalents. Briefly, these offences relate to (inter alia) dealing with money or property that is the proceeds of crime by receiving, possessing, concealing or disposing of that money or property. Different penalties apply depending on a person’s level of knowledge and the amount of money involved.

In addition, the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AML/CTF Act) imposes obligations on businesses that could be used to facilitate Money Laundering or Terrorism Financing to mitigate that risk. Briefly, these obligations apply to entities that provide one or more ‘designated services’ set out in the AML/CTF Act. These entities are known as ‘reporting entities’. DTP is not a ‘reporting entity’ under the AML/CTF Act.

Bribery and Corruption

Australian anti-bribery and corruption laws are provided for in the federal and state-based criminal law:

• Under the Commonwealth Criminal Code, it is an offence to offer, or cause, a bribe or corrupting benefit to be given to a Commonwealth or a foreign public official. It is also an offence for a body corporate to fail to prevent the bribery of a foreign public official by an associate of the body corporate where the bribery is for the profit or gain of the body corporate.
• Each Australian State and Territory has its own laws prohibiting bribery and corruption of State or Territory public officials or officers.

 

4. Statement of Commitment to Prevention of Financial Wrongdoing and Guiding Principles

DTP has a zero-tolerance approach to Financial Wrongdoing in all its forms and takes its prevention seriously.

DTP is solely an educational institution and has no sectarian or political affiliations. DTP’s commitment to empowering civil society, and to participatory methods of teaching and learning, are consistent with and reflect good development practice.

DTP is committed to working in partnership with others, and to recognising the knowledge, skills and perspectives of its partners and the participants in its programs. DTP recognises its responsibility for the funds it disburses through its program partners. DTP’s courses emphasise peaceful, non-violent, and collaborative approaches to seek justice and redress and remedy for human rights abuses using the redress mechanisms that are available and developing the skills of dialogue, negotiation and engagement.

DTP recognises that the clear objective of the Australian aid program is to advance Australia’s national interests by assisting developing countries to reduce poverty and achieve sustainable development.

DTP seeks to promote and respect the human rights that belong to everyone, everywhere by virtue of their humanity. DTP recognises that Financial Wrongdoing is inconsistent with, and contrary to, its principles and objectives set out above and the values of human dignity that human rights standards affirm and uphold.

 

5. Implementation

As noted above, DTP has chosen to implement the below measures on a voluntary basis. DTP is not a ‘reporting entity’ under the AML/CTF Act.

Risk Assessment

DTP has assessed the level of risk of Financial Wrongdoing involving its operations and funds as low. A limited amount of funding is disbursed to program partners to meet the costs associated with programs, and partners provide a financial report and receipts for all expenses. DTP’s partnerships are developed with organisations that share DTP’s commitment to human rights and who are known to DTP through previous engagement or are recommended by DTP’s international advisory council, alumni, partners and trainers.

Roles and responsibilities

The Board of DTP has ultimate responsibility for the prevention and detection of Financial Wrongdoing and is responsible for ensuring that appropriate and effective internal control systems are in place.

The Executive Director and each member of DTP Personnel are responsible for investigating instances of Financial Wrongdoing reported to them. DTP Personnel with responsibility for a particular aspect of DTP’s operations must take reasonable steps to implement mechanisms within their area of control to:

• assess the risk of Financial Wrongdoing;
• educate employees about Financial Wrongdoing prevention and detection; and
• facilitate the reporting of suspected Financial Wrongdoing,

and all DTP Personnel involved in the relevant operations must comply with such mechanisms where relevant.

Management should be familiar with the risk areas of Financial Wrongdoing within their area of responsibility and be alert for any indications of such conduct.

All DTP Personnel and contractors share in the responsibility for the prevention and detection of Financial Wrongdoing in their areas of responsibility. All DTP Personnel and contractors have the responsibility to report suspected Financial Wrongdoing. The ‘Reporting and investigation’ section below contains additional information on the reporting and investigation of suspected Financial Wrongdoing. Any DTP Personnel or contractor who suspects Financial Wrongdoing must immediately notify their supervisor or those responsible for investigations.

In situations where a supervisor is suspected of involvement in Financial Wrongdoing, the matter should be notified to the next highest level of supervision or to the Executive Director, or if it concerns the Executive Director, to the Board of DTP.

Training and Awareness

DTP will take reasonable steps such that:

• as relevant to their areas of responsibility, all DTP Personnel are provided adequate training about:
  • the types of Financial Wrongdoing that might occur in their areas of responsibility;
  • the indicators of Financial Wrongdoing;
  • controls and processes which can avoid Financial Wrongdoing, including screening of recipients of DTP funds and donors; and
  • the process of reporting suspected Financial Wrongdoing including, if appropriate, to the police or DFAT, both through ongoing supervision and periodic structured training;
• a copy of this Policy is made available to all DTP Personnel;
• DTP Personnel are encouraged to report suspected instances of Financial Wrongdoing; and
• all DTP external policies including this Policy are made available on request to other relevant stakeholders, including to job applicants, volunteers and interns, and to DTP’s partner organisations.

 

Prohibited conduct

All DTP Personnel are strictly prohibited from (by any means whatsoever) engaging in Financial Wrongdoing, soliciting Financial Wrongdoing, or assisting Financial Wrongdoing. This includes (but is not limited to) soliciting, accepting, offering or giving a bribe, Facilitation Payment or other such benefit.

DTP personnel must not make or accept any payment which they know or suspect will result in a breach of this Policy. If any DTP Personnel suspects that making or accepting any payment will result in a breach of this Policy, they should check with their supervisor or the Executive Director before making or accepting such payment. Transactions which are suspected to involve Financial Wrongdoing must be reported in accordance with this Policy.

Gifts and entertainment

DTP will not provide gifts, entertainment or hospitality to donors and supporters of DTP, or to organisations from which DTP seeks grants. DTP will only provide hospitality to partner organisations, DTP Personnel, contractors and consultants where reasonably necessary to support their work with DTP.

DTP will not accept gifts, entertainment or hospitality that could be perceived as intended to influence DTP, and in any other case will only do so with the approval of the Board of DTP.

Checks and screening

DTP will take reasonable steps to:

• only enter into partnerships with organizations that:
  • share DTP’s commitment to peace, human rights and human dignity;
  • have a policy or policies addressing Financial Wrongdoing, the responsible management and control of funds generally, and other risk management practices as relevant to the organisation’s activities;
  • have appropriate governance, legal registration and authorisations to carry out their activities in relevant countries;
  • DTP has confirmed do not appear on:
    • the list of proscribed organisations maintained by the Australian Government as set out on the Australian Government’s National Security Website ( https://www.nationalsecurity.gov.au/what-australia-is-doing/terrorist-organisations/listed-terrorist-organisations); and
    • the DFAT ASO Consolidated List of all persons and entities listed under Australian sanctions laws as set out on DFAT’s website: https://www.dfat.gov.au/international-relations/security/sanctions/consolidated-list (together, the Prohibited Entities Lists);
• as appropriate, undertake periodic re-assessments of DTP’s partner organisations, including joint capacity assessments of DTP’s and the relevant partner organisation’s risk management and financial management policies;
• before disbursing or distributing funds to any organisation (not limited to DTP’s partner organizations), check and confirm that the organisation does not appear on a Prohibited Entities List;
• ensure through effective acquittal and auditing processes that any funds distributed as part of its programs are not used to support or promote terrorist activities;
• notify DFAT immediately if it becomes aware of any links between DFAT funds or a DFAT-assisted organisation and a terrorist organisation;
• screen partners and other organisations to which DTP disburses funds, in order to mitigate the risk of Money Laundering;
• have adequate controls in place to ensure that DTP funds are not disbursed inappropriately or to organisations which fail its screening processes; and
• report suspected or detected instances of Financial Wrongdoing to the DTP Board of Directors and, where appropriate, appropriate law enforcement authorities, in accordance with the below section on ‘Reporting and Investigation’.

Other Policies and Procedures

Financial Wrongdoing prevention accounting procedures shall be incorporated in DTP’s policies relating to Authority to Sign Cheques, Reimbursement of Expense, Financial Transaction (credit and debit) Cards, Acceptable Use of Computers, Cash Management & Income Handling, and any other relevant policies. These procedures will include monitoring of donations and other transactions involving DTP funds.

Financial Wrongdoing prevention procedures shall be incorporated in DTP’s policies relating to staff recruitment and staff induction.

Reporting and investigation

All complaints of suspected Financial Wrongdoing must be reported to the Executive Director.

• Upon notification or discovery of suspected Financial Wrongdoing, the Executive Director will promptly arrange to investigate the suspected Financial Wrongdoing. The Executive Director will make every effort to keep the investigation confidential, however, members of the Board may be consulted in conjunction with the investigation.
• After an initial review and a determination that the suspected Financial Wrongdoing warrants additional investigation, the Executive Director shall coordinate the investigation with the appropriate law enforcement officials. Internal or external legal representatives will be involved in the process, as appropriate.
• Once a suspected instance of Financial Wrongdoing is reported, immediate action will be taken to prevent the theft, alteration, or destruction of relevant records. Such actions include, but are not necessarily limited to, removing the records and placing them in a secure location, limiting access to the location where the records currently exist, and preventing the individual suspected of committing the Financial Wrongdoing from having access to the records.
• When a suspected case of Financial Wrongdoing has been established, the matter shall be promptly referred to police. Any action taken by police shall be pursued independent of any employment–related investigation by the organisation.
• If the Financial Wrongdoing involves Terrorism Financing, DTP will notify DFAT immediately upon becoming aware of any links between DFAT funds or an DFAT-assisted organisation and a listed terrorist organisation.
• If a suspicion of Financial Wrongdoing is substantiated by the investigation, then disciplinary action, up to and including dismissal, shall be taken by the appropriate level of management.

If the suspected Financial Wrongdoing concerns the Executive Director, it shall be reported to the Board of DTP and references to the ‘Executive Director’ above shall be substituted with the Chair of the ‘DTP Board’.

DTP will also pursue every reasonable effort, including court ordered restitution, to obtain recovery of the losses from the offender.

DTP’s vendors and contractors shall be asked to agree in writing to abide by these procedures.

No DTP Personnel or person acting on behalf of DTP in attempting to comply with this Policy, either through reporting an incident or participating in an investigation, shall:

• be dismissed or threatened to be dismissed;
• be disciplined or suspended, or threatened to be disciplined or suspended;
• be penalised or any other retribution imposed; or
• be intimidated or coerced.

Violation of this Policy will result in disciplinary action, up to and including dismissal.

If an allegation is made in good faith, but it is not confirmed by the investigation, no action will be taken against the originator.

6. Governance and Review

As set out above, the Board of DTP has ultimate responsibility for the effective implementation of this Policy.

DTP will:

• ensure that its financial operations are fully transparent and accountable. As such this Policy should be viewed in conjunction with the DTP Finance Policy;
• integrate this Policy into its procedures and programs manuals; and
• review and renew this Policy every 3 years.

 

7. Approval

The DTP Board of Directors adopted this Policy as follows:

Date of First Adoption: July 2025
Scheduled Year for Review and Revision: 2028