The UK’s three independent regulators of charities (Charity Commission for England and Wales, Office of the Scottish Charity Regulator and Charity Commission for Northern Ireland) are issuing this alert to charities to advise that the regulated financial sector should be used.
It applies to a charity when it receives, holds, moves or uses money, particularly those moving funds internationally.
This alert is being published to raise awareness amongst charities – including their trustees, employees and volunteers – of the need to use bank accounts in the regulated financial sector and the benefits of doing so .
It is the charity regulators’ view that all charities need to have access to, and use, a bank account in the charity’s name in the regulated banking system. Trustees need to be able to use banking facilities, where they are available, to safely receive, hold and move charity funds.
Appropriate use of a bank account is a good way for trustees to demonstrate audit trails for the receipt and movement of money, and that they are discharging their legal duties to keep funds safe and meeting key elements of good governance and prudent financial management.