Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to ensure that banks are applying (a) Know Your Customer and (b) other compliance checks transparently for humanitarian charities operating in vulnerable countries.

Banks are required to apply ‘know your customer’ and other checks to mitigate the risk that banks accounts may be used for money laundering or terrorist financing. The Treasury works closely with the Financial Conduct Authority and industry groups such as UK Finance to ensure that financial crime controls are applied proportionately and on a risk-sensitive basis.

The Treasury and the Home Office are currently updating the National Risk Assessment of Money Laundering and Terrorist Financing (NRA). This sets out the latest assessment of threats, including in relation to the risks to which charitable organisations operating overseas may be exposed, to help regulated firms to take account of these risks when applying financial crime controls. The updated NRA will be published later this year.