Bank De-Risking

What is the issue?
Banks have been put under increasing pressure to reduce risk in their activities, particularly regarding anti-money laundering and terrorism. Further pressure has been created by some multi-billion pound fines that have been issued by regulators in response to errors by banks.

Many banks have responded by reducing the provision of their services to certain ‘high risk’ topics.

How does this effect charities?
Charities work in some of the most challenging parts of the world, delivering interventions that help to save lives and improve quality of life. In order to deliver these interventions, charities need to have access to financial services such as bank accounts, money transfer, payroll and other areas.

To reduce risks from their activities, many banks are delaying or blocking transactions or closing down bank accounts for charities that work in these challenging areas.

What is CFG doing on this issue?
CFG has been holding discussions with government, regulators, banks and charities on how to resolve this issue.

We have also released a policy briefing on de-risking that you can read here (pdf).

We are keen to hear from members about any problems that they have encountered in securing banking facilities for their work. If you would like to share your experiences, please email policy@cfg.org.uk.

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