The Charity Commission, the independent regulator of charities in England and Wales, has opened a statutory inquiry into CAWRM Ltd (1178193). The inquiry was opened on 28 November 2018.
The charity’s object is to relieve poverty and financial hardship in particular, but not exclusively, amongst refugees in the Middle East.
The inquiry was opened after the Commission carried out a compliance visit to CAWRM Ltd which highlighted serious regulatory concerns including:
- the charity’s funds having been held in the personal bank account of an individual linked to the charity, at a time during which the individual was under police investigation for terrorist financing offences;
- that not all of the funds held by the individual had been repaid to the charity;
- charitable funds being put at risk by the couriering of significant amounts of cash out of the UK to the Middle East, with approximately £45,000 transferred in this manner in the first half of 2018;
- the unauthorised employment and remuneration of a trustee;
- unexplained large payments to a limited company whose sole director is the individual linked to the charity; and
- the inability to account for the charity’s funds before it was registered with the Commission.
The Commission has issued an order under section 76(3)(f) of the Charities Act restricting certain transactions that the trustees can enter into without the Commission’s prior consent.
In order to address these serious regulatory concerns, the investigation will consider:
- the administration, governance and management of the charity by its trustees;
- the financial controls and management of the charity and whether its funds have been properly expended solely for exclusively charitable purposes and can be accounted for; and
- whether or not the trustees have complied with and fulfilled their duties and responsibilities as trustees under charity law.
It is the Commission’s policy, after it has concluded an inquiry, to publish a report detailing what issues the inquiry looked at, what actions were undertaken as part of the inquiry and what the outcomes were. Reports of previous inquiries by the Commission are available on GOV.UK.
Notes to Editors
- The Charity Commission is the regulator of charities in England and Wales. To find out more about our work see the about us page on GOV.UK.
- Search for charities on our check charity tool.
- Section 46 of the Charities Act 2011 gives the Commission the power to institute inquiries. The opening of an inquiry gives the Commission access to a range of investigative, protective and remedial legal powers.