Wheelyboat Trust
The Wheelyboat Trust is dedicated to helping disabled individuals enjoy water-based activities.
10 February 2026
Navigating AML and KYC requirements for charities
Anti‑Money Laundering (AML) and Know Your Customer (KYC) regulations shape how your charity opens and manages its bank accounts. These checks may take time to complete, especially if your charity has a complex structure or frequently changing trustees but are essential to preventing financial crime and safeguarding both your organisation and wider society.
What AML means for your charity
Anti‑Money Laundering (AML) regulations require banks to gain comfort that your charity’s funds come from legitimate sources. Your bank may ask you to demonstrate this, particularly when you are:
- Receiving large grants, especially from high risk international sources, or making payments to high risk jurisdictions
- Handling irregular or one‑off donations
- Working with partners or funders unfamiliar to the bank
This is not about questioning your mission or motives. It is about making sure that charitable funds do not, even inadvertently, help enable criminal activity or terrorism.
It is your responsibility to show where funds come from, why you are receiving them, why payments are being made, and how they support your charitable purpose.
What KYC means for your charity
Know Your Customer (KYC) rules require your bank to verify who controls and manages your organisation’s bank account.
Your bank may request:
- Proof of identity
- Proof of address
- Governing documents
- Charity registration details
- Updated records when trustees or signatories change
Charities often feel the impact of these checks more acutely than commercial organisations, especially when trustees change frequently or operate on a volunteer basis. But these checks help ensure your account cannot be misused by individuals seeking to hide their identity or gain improper access to charitable funds.
How to stay compliant and avoid delays
To maintain confidence and compliance, follow these six principles:
1. Keep your bank informed of any changes promptly
Update your bank whenever key details change, such as trustee appointments or resignations, changes to contact details or updates to your governing documents. Keeping this information current ensures the bank can contact the right people and meet its regulatory obligations.
2. Maintain accurate and up-to-date records
Ensure trustee identification, proof of address and organisational documents are current and easy to access. Regularly check that information held by the bank matches your internal records.
3. Strengthen your financial controls
Put in place controls such as segregation of duties, dual authorisation, risk monitoring and regular internal reviews. These help protect your charity from fraud and provide the bank with reassurance about governance standards.
4. Keep your financial reporting up to date
Timely submission of financial statements and annual reports maintain transparency and show that your organisation is well managed.
5. Maintain internal policies and procedures
Make sure your charity has robust policies relating to finances, governance and risk. Good governance supports compliance and helps the bank understand how your organisation operates.
6. Follow the latest charity-sector regulatory guidance
Stay aligned with good practice updates from The Charity Commission for England and Wales, The Office of the Scottish Charity Regulator or The Charity Commission for Northern Ireland.
By applying these principles, your charity will be better positioned to avoid delays, reduce repeated documentation requests and maintain a smooth banking relationship.