Debanking Burden Falls Disproportionately on Charities

Andy Mayer quoted in Third Sector

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.

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