Charities in Bermuda are to be screened to discover if they are at risk of being used to hide terrorist funds.

A government spokeswoman said the Registry General had hired Oyster Consulting (Bermuda) Ltd to help assess all local charities.

She said: “This is being conducted to identify if any entities are vulnerable to being used as a conduit for terrorist financing.”

The spokeswoman added: “Non-profit organisations around the world are now being monitored progressively as it has been discovered that these organisations are vulnerable to being misused by criminals to launder money or finance terrorism.

“Keeping in line with Bermuda’s effort to combat money laundering and terrorist financing, the Registrar General, in consultation with the National Anti-Money Laundering Committee, has been tasked with monitoring/regulating the charities sector.”

The company will contact churches, charitable trusts, companies limited by guarantee or any other legal entity set up in Bermuda as a charity.

The spokeswoman said it would ask for a range of information to determine if there are any potential risks.

She added: “The Charities Act 2014 designated the Registrar General as the competent authority for charities.

“As such, the Registrar is required by Financial Action Task Force’s international standards to review and assess all charitable entities within the sector to identify any risk that may exist.

“Pursuant to section 2 of the Act, a charity means an entity which is established in Bermuda for charitable purposes; this includes those that are registered or unregistered. The Registrar is primarily focused on charities’ potential international exposure which may make them vulnerable to being abused as mechanisms for the financing of terrorism.”