Australian charities and not-for-profit organisations continue to be targeted by backers of terrorism to help secretly fund overseas operations.
Nearly 30 suspicious matters related to terrorism financing were reported between 2012 and 2016 worth $5.6 million, according to new research.
"This is a significant amount in the current terrorism financing environment," money movement watchdog Austrac said in a report, released on Monday.
While not-for-profits were not the main source of terrorism financing in Australia, they were "attractive" to financiers.
"What this shows is that NPOs have the capacity to quickly raise and camouflage the movement of large amounts of funds offshore to support individuals or groups engaged in foreign conflict," Justice Minister Michael Keenan said in a statement.
Austrac rated the threat of terrorism financing to the sector as "medium", noting that self-funding - through salaries, loans or credit cards - is the dominant method of terrorism financing in Australia.
Money laundering also posed a "medium" risk, but the greatest criminal threats to NPOs came from fraud and theft.
Between 2012 and 2016, 249 matters were reported for suspected criminal misuse with a total value of $57.8 million.
A majority (155) related to money laundering offences, 69 were linked to offences against the commonwealth, state or territory laws, while almost a dozen related to tax evasion.
"The fact that criminals are seeking to target a sector founded on helping our most vulnerable just shows that they are the lowest of the low," Mr Keenan said.
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