In her piece, Lucy explores how, whilst it is extremely unlikely that UK charities will be used as vehicles for money laundering, organisations across the sector still need to be mindful of the 5MLD’s potential impact on their operations.
Pointing to the relevance of this legislation to charities, Lucy states that ‘incorporated charities may also be affected. When a donor makes a donation to charity for particular charitable purposes (for example to a charitable school to award an educational prize), a charitable trust is often created. If restricted and endowment funds held on trust are caught by the new requirement, very many charities will be affected.’
In concluding her arguments, Lucy rounds off her article by expressing her wish that the Treasury takes into account feedback that charities provided to an earlier consultation on these proposals.
You can read the rest of Lucy’s piece, which sits behind Charity Finance’s paywall, here.
This information is necessarily of a general nature and doesn’t constitute legal advice. This is not a substitute for formal legal advice, given in the context of full information under an engagement with Bates Wells.
All content on this page is correct as of October 3, 2019.