Bank error – Not in your favour!

October 7, 2020
Articles and Resources

From time to time charities need to change signatories on their bank accounts, or open new bank accounts. Sometimes however this seemingly simple task is not as easy as it sounds! 

For charities which are companies limited by guarantee, current banking regulations suggest that it is necessary for the Bank to seek details of the charity’s directors, and then cross-match them against the records at the Australian Securities and Investments Commission (ASIC). However, since 2012, charities are not required to update ASIC if their directors change, but to notify the ACNC. So, when the Bank checks the ASIC register there is a mismatch, and that is where the nightmare begins… 

Here are two workarounds if you are in this situation. Option 1 is that when you start talking to the Bank, you hand them the linked flyer from the ACNC, which will hopefully head off the problem arising. Option 2, if the problem has already arisen and the Bank is now in “difficult” mode, is to ask the ACNC to write a letter specifically naming your charity and explaining the situation for you to provide to the Bank, which should solve the situation. If you need such a letter, you should phone the ACNC on 132262 or contact them via ACNC Enquiries to ask for it.

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