The USA PATRIOT Act, enacted in 2001, is a comprehensive legislation that aims to enhance the US government's ability to combat terrorism, money laundering, and other criminal activities. One of the aspects of the Act that has extraterritorial reach is the requirement for US financial institutions (FIs) to apply certain due diligence and reporting obligations to their correspondent accounts and private banking accounts for foreign FIs and non-US persons, respectively12. These obligations are intended to prevent foreign FIs and individuals from using the US financial system to facilitate money laundering, terrorist financing, or other illicit activities. The Act also authorizes the Secretary of the Treasury to impose special measures, such as recordkeeping, reporting, or prohibitions, on certain foreign jurisdictions, FIs, or transactions that are found to be of primary money laundering concern34. These special measures can have significant impact on the access and operations of foreign FIs and persons in the US financial market.
References:
1: USA PATRIOT Act, Title III, Subtitle A, Section 3121
2: 31 CFR 1010.610 - Due diligence programs for correspondent accounts for foreign financial institutions2
3: USA PATRIOT Act, Title III, Subtitle A, Section 3113
4: 31 CFR 1010.651 - Imposition of special measure against foreign jurisdictions, foreign financial institutions, classes of international transactions, or types of accounts of primary money laundering concern4 Reference: https://www.fincen.gov/resources/statutes-regulations/usa-patriot-act

This is a red flag of money laundering or terrorist financing that involves the use of non-profit organizations (NPOs) as conduits for illicit funds. NPOs may be vulnerable to abuse by criminals who exploit their legitimate activities, reputation, and access to funds and resources. A transaction monitoring process that would alert a bank for this red flag activity is to analyze the source, destination, frequency, and purpose of the funds transferred to and from the charity account, and to compare them with the expected profile and activity of the NPO. If the bank detects any inconsistency, discrepancy, or deviation from the norm, it should raise an alert and conduct further investigation.
References:
* FATF Report: Risk of Terrorist Abuse in Non-Profit Organisations, page 9
* Transaction Monitoring Processes for Red Flag Activity in Banking
* AML Red Flags - What are the Top 10 Indicators? - ComplyAdvantage, section "Red flags related to the nature of transactions"