There’s a legal storm brewing over in the U.K.
Bank accounts of over 300 charities based in the U.K. have been shut down within the past two years due to a global crackdown on illegal funds, Reuters reported. In addition, Charity Finance Group told Reuters that delayed payments have disrupted operations in thousands of charities, which has caused financial loss and risks to employees.
In light of this discovery, the U.K. government is putting together a team of charity executives, bankers and officials to brainstorm new policies to allow charities with no illegal money flow to continue to operate “unhindered.” The Reuters article stated, “… legitimate charities say that have been cut off from the financial system, because banks have been alarmed by billion dollar fines meted out for breaching sanctions, anti-terror financing and anti-money laundering rules.”
In March, there will be review conducted by the Financial Action Task Force (FATF) to address these alarming issues of money laundering and financing of militant groups. Among the charities that were hit with the global crackdown were Oxfam and Save the Children.
Reuters reported that the FATF has recorded over 100 cases of alleged terrorist financing within charity groups.
Click here to read the full story from Reuters.