Regulator bans online fundraising pair and redistributes £200,000

The Charity Commission has banned two online fundraisers form taking senior roles at charities and ordered the redistribution of almost £200,000 they raised to charities.

The regulator’s enquiry focused on Mohammed Hasnath and Ruksana Ali, who operated online fundraising platforms to raise money for Rohingya refugees.

But neither fundraiser was able to show how money raised was being used.

It emerged during the Commission’s investigation that trustees were asking for donations to be placed in their personal bank account.

According to the fundraising platforms £200,000 had been raised, however more than £68,000 “could not be properly accounted for and was likely to have been used as non-charitable private expenditure by the former trustees”.

Funds raised had been transferred into six personal bank accounts and a PayPal account, mixing it with personal money already in these accounts.

In addition, the regulator found there were no governance or financial controls in place to protect and apply the funds raised.

The commission has now redistributed £196,000 of money raised to two registered charities that support Rohingya refugees.

Hasnath and Ali have been removed as trustees from the fund and disqualified. They are no longer allowed to take up trustee or senior management roles at any charity.

“Charities exist to improve lives and strengthen society, so it is vital that trustees fulfil their responsibility toact in the best interests of their charity at all times,” said Charity Commission head of compliance, visits and inspections Steve Roake.

“Instead, this inquiry uncovered misconduct by these trustees who likely allowed funds to go astray and demonstrated a disregard for the standards and behaviours expected of them. It’s right we’ve removed these individuals from acting as trustees.

“We’re glad we’ve been able to use our powers to protect the remaining funds and ensure this money has now safely reached the cause for which it was intended.”

Rohingya Msuslims have been subject to persecution in Myanmar. Earlier this year the UN ordered the Myanmar government to ensure the protection of the Rohingya community from genocide.