Document ID: chunk:federal_register_of_legislation:F2023C01018:reg:6:p11
Version: federal_register_of_legislation:F2023C01018
Segment Type: reg
Provision Reference: reg 6 (pt 11/15)
Character Range: 57135–60152

1—Activities and control of resources (including funds)

Object
 (1) The object of this external conduct standard is to give the public (including members, donors, employees, volunteers and benefit recipients of a registered entity to which the standard applies) confidence that a registered entity is managed in a way that:
 (a) ensures that the registered entity remains solvent; and
 (b) minimises the risks to the registered entity's assets; and
 (c) ensures that the registered entity, and its resources, are furthering the registered entity's purposes; and
 (d) ensures that the registered entity is operating in a way that is consistent with its purpose and character as a not‑for‑profit entity.

Application
 (2) This standard applies to a registered entity that is:
 (a) operating outside Australia; or
 (b) working with third parties that are operating outside Australia.

Standard
 (3) The registered entity must:
 (a) take reasonable steps to ensure that its activities outside Australia are carried out in a way that is consistent with its purpose and character as a not‑for‑profit entity; and
 (b) maintain reasonable internal control procedures to ensure that resources (including funds) are used outside Australia in a way that is consistent with its purpose and character as a not‑for‑profit entity; and
 (c) take reasonable steps to ensure that the resources (including funds) given to third parties outside Australia (or within Australia for use outside Australia) are applied:
 (i) in accordance with the entity's purpose and character as a not‑for‑profit entity; and
 (ii) with reasonable controls and risk management processes in place.
Note: Paragraphs (a) and (b) are intended to ensure that a registered entity has procedures in place to manage the risks associated with its own operations and activities. Paragraph (c) is intended to ensure that reasonable controls are in place with respect to resources given to third parties.
 (4) The registered entity must comply, in relation to its activities outside Australia, with Australian laws relating to any of the following:
 (a) money laundering;
 (b) the financing of terrorism;
 (c) sexual offences against children;
 (d) slavery and slavery‑like conditions;
 (e) trafficking in individuals and debt bondage;
 (f) people smuggling;
 (g) international sanctions;
 (h) taxation;
 (i) bribery.
 (5) The registered entity must maintain reasonable internal control procedures to ensure compliance with subsection (4).

50.25  Standard 2—Annual review of overseas activities and record‑keeping

Object
 (1) The object of this external conduct standard is to ensure that a registered entity to which the standard applies is transparent and accountable to the public in relation to its activities carried out outside Australia.

Application
 (2) This standard applies to a registered entity that is:
 (a) operating outside Australia; or
 (b) working with third parties that are operating outside Australia.

Standard
 (3) The registered entity must