Ask Steve
Q: “I have been sent a big questionnaire by my charity’s bank: do I really need to fill this in as it seems to be asking about things that I don’t see why they need to know?”
It is important to work with your bank on this and not ignore them. However, it is also helpful if you understand the concerns they have; which will include money being sent overseas to ‘higher risk’ countries. Ignoring requests or belligerence does not help, and once a bank facility is closed it is almost impossible to find out why or get it reinstated.
You are not alone in asking questions on this. We have had quite a number of churches and Christian charities having issues with banks, questions and accounts being closed without warning. It does appear that in many ways having satisfactory banking is becoming more difficult for small charities than at any time in the last 40 years.
Even with full co-operation, the bank may not have the appetite for the risk to keep operating the account and we have been contacted by charities that have their accounts closed without much warning.
This is largely being driven by requirements that banks are increasingly under over whether they are doing enough to prevent money laundering. As a result they will go through a process of risk assessment with the customers and Christian charities will not be exempt. In fact, if they are working internationally (even to a small extent) or withdrawing cash more than most bank customers, they are more likely to be reviewed.
Given the very significant difficulties of operating without a bank account and of opening new accounts at this time, I am increasingly recommending charities have active bank accounts with two different banking organisations.
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