Some community groups are having their bank and Credit Union accounts closed as new anti-laundering guidelines come into play, said local councillors at a meeting earlier this week.
New and more stringent rules imposed by financial institutions in order to combat money laundering mean that some groups are no longer able to hold a bank account which would normally only be used for grant payments, and typically for relatively small amounts. However, Cork County Council’s own rules means that payments of grants have to be by bank transfer (or by cheque in exceptional circumstances), meaning that groups could lose out if they fall between the two administrative stools.
Cllr Sheila O’Callaghan raised the matter on the behalf of a number of her district colleagues at Cork County Council’s full meeting on Monday, saying that these groups are often getting small amounts of funding between €100 and €600, and their account is only used for receiving the grant money and later withdrawing it. She, and other councillors, became aware of the issue when institutions, AIB in Cobh among them, began closing these types of accounts.
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