General precautions to prevent money laundering have made it complicated and costly for civil society associations to manage their bank accounts. Now, the Danish Financial Supervisory Authority has released a new guide to lessen the burden for both associations and companies when banks have to carry out customer due diligence procedures.

“We know that volunteers in sports clubs and other civil society associations are burdened with bureaucratic procedures and that this makes it harder for civil society associations to attract volunteers,” ISCA President Mogens Kirkeby says.

“Volunteers are driven by their passion to make activities and social life better for their fellow citizens. Bureaucratic rules and procedures are diverting their engagement from their important primary tasks. It is therefore important that regulations and control of civil society associations are carefully considered and kept proportionate.”

The Danish Financial Supervisory Authority’s press release states that “The new guidance focuses on which characteristics support the classification of an association as respectively limited and increased risk, and what significance this has for the checks the banks must carry out on the associations.”

ISCA member DGI predicts, in turn, that “if banks follow this guidance, most sport associations can be freed from costly and cumbersome control and documentation procedures”. As general costs continue to rise around the globe, similar initiatives to reduce the financial burden on community organisations and clubs could help civil society weather the storm.

Danish Financial Supervisory Authority press release (in Danish)