The Legal Affairs Division of the Prime Minister's Department will work with Bank Negara Malaysia and the Inland Revenue Board (IRB) to intensify initiatives to monitor the operations of non-profit organisations (NPO) to prevent misuse of funds.

Minister in the Prime Minister's Department Nancy Shukri said such monitoring was crucial to ensure organisations with accumulated funds exceeding billions of ringgit each year were not involved in criminal activities such as money laundering and financing terrorism.

She said the monitoring was also for registered organisations enjoying tax exemption under Subsection 44 (6) of the Income Tax Act 1967.

"Tax exemption of more than RM1.3 billion in 2014 for example, was a loss of income to the country. Thus, any organisation being granted this privilege is urged to ensure that the benefits to the public commensurate with the loss of income," she said.

Nancy was speaking to reporters after attending the NPO Symposium 2016 entitled 'By the People, For the People' at the Islamic Training Institute in Bangi today.

Currently, there are 371 NPOs involved in charity, social, education, literature, religion and scientific works throughout the country.

- Bernama