Easy options for group finances? Don’t bank on it…
November 30, 2021
Recently we have been contacted by a number of local groups experiencing difficulties opening bank accounts. Many providers have stopped offering this facility as an unintended consequence of a tightening of banking legislation around money laundering.
This causes a problem as funders often insist on a bank account in the group’s name. This is currently a national issue but we are determined to help local groups in Cumbria resolve this problem. In the meantime, there are a couple of options open to local groups seeking a new account:
- If you already have a personal account at one of these providers -Nat West / Lloyds / Metro / RBS / Santander – ask them about opening an additional account in the group’s name – some banks will accept this as you are already known to them.
- As a short term option you can make an arrangement with The Social Change Agency that will let you hold the funds in the group’s name BUT be aware that there is an initial fee for this of £42 and an ongoing 5% charge for any money coming into the account – less than ideal but a possible emergency stop gap for groups
We will continue to work on this issue, watch out for further updates.