Civil society organisations (CSOs) often face difficulties in accessing financial services in banks or other financial institutions. Common situations in civil society operation, such as receiving odd amounts from various donors or money transfers to high-risk countries, appear to financial institutions as risky because of the counter-terrorism and anti-money laundering protocols.
This Practical Guidance aims to provide experience-based insight into the customer risk profiling and monitoring practices for CSOs across financial institutions. It addresses what can be done in practice regarding the typical “red flags” for the banks that are "business as usual" activities for CSOs. We also provide recommendations for navigating the often opaque and complex system, based on current and concrete practices of financial institutions.
It is important for CSOs to understand and know in advance what banks require of them in order to cultivate more understanding between the CSO sector and financial institutions. It is also relevant for donors and funders to acknowledge the difficulties that CSOs face in carrying out some actions such as opening a separate bank account. This guide provides support to CSOs as they navigate through the complexities of financial requirements.
See also our short video on the same topic: