IEA Chief Operating Officer Andy Mayer has been featured in Third Sector discussing new IEA research showing that government anti-money laundering (AML) regulations are fuelling a surge in debanking.

Andy said:

“A charitable company limited by guarantee does not have shares, any assets are held in trust not owned by individuals, and with a sufficiently diversified board or membership structure, it lacks anything akin to ‘ultimate beneficial ownership’, which is normal for private companies.

“Politely pointing this out in turn can yield a suspicion that the charity is concealing something, which in turn can lead to enhanced checks.

“In summary, the reversal of the burden of proof – that charities must repetitively prove they are not fronts for criminal behaviour rather than respond to requests based on reasonable suspicion – coupled with enforcement by bank clerks with no expertise in either financial crime, charity or company law is creating a costly mess that risks the survival of any charity failing to tick every box accurately, every time.”

Read the full article here.

Read a full copy of Debanked: The economic and social consequences of anti-money laundering regulation.