Joint guidance from all of the UK's charity regulators

All three of the UK’s charity regulators have warned charities to use regulated banking services or they could be at financial risk.

This week, the Office of the Scottish Charity Regulator, the Charity Commission for England and Wales and the Charity Commission for Northern Ireland published an alert advising charities to use Financial Conduct Authority (FCA) regulated banking services.

They said all charities should have a bank account in their name and must be able to give a good reason to hold and transfer funds by cash.

Chief executives David Robb, Helen Stephenson and Frances McCandless said in a joint statement: “The financial services provided by banks and financial institutions provide safe, responsible, efficient and transparent way for charities to conduct their financial affairs.

“Every charity should have a bank account in its name to help keep its funds secure. This is the most prudent and responsible way to protect funds and evidence the movement of those funds in most cases.

“It is in the best interests of charities to hold and move funds through the regulated financial sector where it is available – if other methods to hold or move funds are used they involve higher risks and in some cases can result in slowing down charitable assistance to beneficiaries.”