Regulators warn charities to use trusted financial institutions

An alert issued by the Charity Commission, the OSCR and the CCNI says it is vital that charities use bank accounts held in regulated financial services

Use trusted banks, say regulators
Use trusted banks, say regulators

Charities should ensure they use bank accounts held in regulated financial services, the UK’s three charity regulators have said.

The Charity Commission, the Office of the Scottish Charity Regulator and the Charity Commission for Northern Ireland have issued the alert to ensure charities use trusted financial institutions.

The alert says it is vital that charities, and particularly trustees, are able to use banking facilities, where available, to safely receive, hold and move charitable funds, particularly when moved internationally.

Regulated bank accounts are also a good way to demonstrate audit trails for the movement of money, the alert says.

If a charity operates without a regulated bank account, the alert says, the funds are at greater risk and the safeguarding and record-keeping policies required for those funds are "more difficult and create a disproportionate extra burden on the trustees".

In a joint statement, Helen Stephenson, David Robb and Frances McCandless, the chief executives of the three charity regulators, said: "The financial services provided by banks and financial institutions provide safe, responsible, efficient and transparent ways for charities to conduct their financial affairs. Every charity should have a bank account in its name to help keep its funds secure.

"This is the most prudent and responsible way to protect funds and evidence the movement of those funds in most cases. It is in the best interests of charities to hold and move funds through the regulated financial sector where it is available – if other methods to hold or move funds are used, they involve higher risks and in some cases can result in slowing down charitable assistance to beneficiaries."

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Already registered?
Sign in
Follow us on:

Latest Charity Finance Jobs

RSS Feed

Third Sector Insight

Sponsored webcasts, surveys and expert reports from Third Sector partners


Expert Hub

Insurance advice from Markel

Charity property: could you be entitled to a huge VAT saving?

Charity property: could you be entitled to a huge VAT saving?

Partner Content: Presented By Markel

When a property is being constructed, VAT is charged at the standard rate. But if you're a charity, health body, educational institution, housing association or finance house, the work may well fall into a category that justifies zero-rating - and you could make a massive saving