Helping NGOs do more with their money

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How can NGOs and banks work more effectively together on due diligence?

21 April 2016

At our first treasury management seminar for INGOs in London, we heard from a leading bank about their plans to launch a risk management framework for handling Non-Profit Organisation (NPO) transactions. They, like many others, are under increasing pressure from regulators to prove that they are performing the necessary due diligence on international payments relating to NPO programmes. This is happening against a backdrop of increasing scrutiny due to heightened fears of money laundering and abuse of NGOs by terrorist organisations. For example, European banks are paying record fines (last year, the FCA fined two major banks a total of more than £500m for not having adequate risk management systems in place).

As a result, NPOs are facing tighter restrictions, with some even having their bank accounts suspended or closed altogether due to excessive ‘de-risking’ activities.  These activities are being driven by recommendations issued by bodies such as the Financial Action Task Force (FATF) that are being translated into regulations such as the EU’s 4th Money Laundering Directive.

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Important issues to consider during the FX procurement process

21 April 2016

As an NGO with international commitments, procurement of foreign, often quite exotic, currencies is an unavoidable bi-product of your decision to deliver aid in another country. It can often be quite daunting transacting in foreign exchange markets, particular when the funds are destined for some of the more challenging locations, like South Sudan, Sierra Leone or even Vanuatu. Knowing which provider to use can be difficult as there are many players in the market these days, all promising to save you money. Here are a few tips to consider when deciding how to meet your foreign exchange needs.

 

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Increasing funding for national NGOs from about 1% to 20% of humanitarian spending will require trusting partnerships built on confidence and assurance

21 April 2016

With the World Humanitarian Summit just around the corner, there are hundreds of conversations going on across the world about how to reform the humanitarian aid system to meet mounting global challenges.

But the one message that keeps cutting through the noise is that local actors should be equipped with the funding and capacity to implement long-term solutions to some of the most pressing problems affecting their communities.

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