How CAF Bank helps to protect charities from financial crime

The threat of financial crime continues to escalate and charities are often perceived as “soft targets” by criminals. At CAF Bank, we are dedicated to providing a safe and secure bank for charities and other voluntary organisations. Owned by a charity ourselves, we have a deep understanding of the challenges that charities face, we are here to provide support. For example, our specialist knowledge means we can assist when charities want to make payments to high-risk jurisdictions.

The financial crime threats charities face

Financial crime includes money laundering, terrorist financing, bribery and corruption, sanctions breaches, tax evasion, and fraud. These crimes cause real harm in the world and, in many cases, require the work of charities to combat their effects.

Charities play a vital role in addressing social issues, from poverty and healthcare to education and environmental protection. However, they are frequent targets of financial crime due to several risk factors:

1. Public Donations: Charities rely heavily on individual and corporate donations, often through online platforms. To ensure donors have confidence in their organisation, charities need to protect themselves from reputational damage. Criminals may exploit donations for money laundering purposes, using them to make illicit funds appear legitimate and mask other unlawful activities.
2. Limited Resources: Many charities lack the infrastructure and dedicated employees necessary for comprehensive fraud detection and prevention.
3. Global Reach: Charities operating internationally face even higher risks of financial crime, given the complexity of cross-border transactions and varying regulatory requirements.

Millions of pounds are lost to fraud each year, with incidents of phishing, impersonation and cyber crime on the rise. Against this backdrop, we continue our efforts to support charitable organisations in countering these threats.

CAF Bank's role in supporting charities

We can answer your queries and give personalised support depending on your individual circumstances.  Our goal is to empower charities to defend themselves against evolving threats effectively.

1. Financial crime education

We have a Security Centre on our website that highlights some of the latest scams and offers fraud prevention tools. We aim to raise awareness about financial crime while arming charities with the skills they need to protect themselves.

2. Fraud detection

We have developed effective monitoring processes and we are on the lookout for transactions that seem unusual or suspicious. We will sometimes call you to check whether a transaction is genuine, so we can protect your funds.

3. Dedicated support

Our award-winning, UK-based contact centre provides assistance from experts,  who understand the unique issues and needs of the charity sector.

4. Technology

Our online banking is dual control, providing an extra layer of protection when you need to make payments. 

5. Collaboration

We work with customers, regulators, industry bodies, and financial institutions to try and stop other banks from derisking charities, allowing charities to carry on with their vital work. Although some banks may close charity accounts due to financial crime concerns, our values are very much about working in partnership with our customers. We go the extra mile in conducting regular reviews and working with charities to ensure that financial crime risks are mitigated.

Why this support matters

Financial crime is a serious and growing challenge for charities. Financial losses due to fraud or cybercrime can have a major impact, directly affecting a charity’s ability to deliver vital services. Even inadvertently becoming involved in financial crime can cause reputational damage, loss of future donor income, regulatory investigations and fines, and general disruption. 

By providing dedicated support and expertise, CAF Bank aims to help charities protect themselves from these threats. We strive to help strengthen the security of individual charities, so they can continue to deliver their critical work.

Other useful information

Protect your charity from fraud and cyber crime
Charities: due diligence, monitoring and verifying the end use of charitable funds
Charities: holding, moving and receiving funds safely
Financial sanctions guidance for charities and NGOs