CFG launch a research survey to explore the impact of sanctioning regimes on charities

7th July 2014

CFG have identified through its work with DFID, BBA and others that due to the de-risking activities by banks in response to the anti-money laundering and counter terrorism regimes charities are finding it increasingly difficult to send vital funds to conflict and ‘at risk’ locations.  However our evidence is mainly anecdotal and there is a real need to establish the extent of this problem and the impact that it is having.

CFG have launched a survey open to affected charities. The purpose of this survey is to obtain qualitative and quantitative information about the experience of UK charities in the face of enhanced scrutiny by banks and governments in recent years. This scrutiny has been known to affect international payments by charities, in particular payments to ‘high risk areas’ those areas under sanctioning clauses, dealing with complex emergencies (such as conflict), and, or where terrorist or proscribed groups are known to operate.
This survey should be answered by those working in charities that transfer money abroad and are responsible for the handling of such funds; typically a finance or operations manager.
Caron Bradshaw CEO of CFG says:

“It is essential that we understand the scope of impact that an increasingly risk adverse approach from banks is having.  International NGOs play a crucial role contributing to stability.  They help prevent the growth and spread of terrorism abroad by providing humanitarian aid and with the building of infrastructure. We want to work with banks and iNGOs to achieve a shared understanding of the risks involved in processing overseas transactions and the thorough due diligence processes most charities undertake to ensure their money is reaching its end goal.”

The information will be used on an anonymous basis to contribute to a paper on “de-risking” in the banking sector being produced by the British Bankers’ Association and by the CFG in their work in this area.

1. Charity Finance Group’s vision is to inspire the development of a financially confident, dynamic and trustworthy charity sector. CFG works with finance managers to enable them to give the essential leadership on finance strategy and management that their charities need; promoting best practice in charity finance, driving up standards, campaigning for a better operating environment and ensuring every pound given to charity works harder. CFG has more than 2,200 members, and collectively our members are responsible for the management of over £19bn in charitable funds.
2. The multi stake holder BBA project committed to work with relevant partners, and particularly those within the G20, on developing an enhanced understanding of the de-risking conundrum. Identifying clear de-risking evidence and impact was considered a necessary requirement for advancing the project and as such asked CFG to assist with this process.
3. CFG responded to the written enquiry into counter terrorism by the Home Affairs Select Committee:
The report of this enquiry can be found here.
4. This survey closes on Friday 18th July.

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