When working in areas of conflict, regulation can make it difficult for charities to access funds. Here’s how to make it easier. The refugee crisis, the continuing devastation in Syria and the Nepalese earthquake earlier this year have all shown what a crucial job international charities do.
CAF Bank supports a number of international charities based in the UK and it is clear that the need for collaboration between banks and humanitarian agencies has never been greater.
The relationship between charities and their banking providers is an essential part of the process when getting aid to where it is most needed. The thorough, and often complex, regulation that surrounds the financing of organisations operating in areas of conflict can mean that access to banking can be difficult for charities.
Banks which work with any type of international organisation have to consider anti-money laundering regulations and the increasing enforcement action taken by international and UK authorities. When it comes to sanctions, the banking sector has the biggest responsibility for implementing and monitoring them.
So, with this in mind, how can charities smooth the process and avoid any unnecessary holdups? There are a number of basic things a charity can prepare before speaking to a new or existing banking provider. Here are four questions any bank will be looking for a charity to answer:
1. IS ALL OF YOUR KEY INFORMATION UP-TO-DATE AND CONSISTENT?
Make sure the information a charity provides about its cause or the location of its work is consistent with what has been registered elsewhere – for instance with the Charity Commission. Make sure you have a clear record of the countries in which your charity is working, and that this is consistent with information registered with the Charity Commission. Given the global nature of banking, banks will look beyond national borders when carrying out due diligence checks. You should also be ready to provide details of overseas donors, affiliated or partner organisations.