While banks all have their own business strategy and specific market focus, there is now a significant range of banking products and finance options available.

The UK benefits from a very competitive business finance sector, which ensures that banks are keen to attract and retain all viable businesses as well as many community organisations as customers. Over the last year, banks have faced scrutiny from the Financial Conduct Authority (FCA), an independent regulator, about the availability of banking products, including bank accounts, to organisations across all sectors. If an account is closed or an application declined, the main reason is due to financial crime concerns, and the financial sector is at the forefront of efforts to tackle this crime. Accounts are only closed after extensive review, and customers must be treated fairly.

In response to the FCA’s scrutiny, many banks have developed additional internal controls when making decisions to withhold or withdraw products or services. Also, HM Treasury intends to bring forward legislation to ensure that customers receive a detailed and specific explanation when providers close their accounts, along with a longer period of notice—unless certain exceptions apply, such as in financial crime situations. The aim is to ensure fair treatment and greater transparency for customers, recognising the importance of banking and financial services.

Research from the British Association for Shooting and Conservation shows that some recreational shooting organisations do experience difficulties in opening new bank accounts, although acknowledge that the number of complaints has declined recently.

Typically, providers will conduct a systematic assessment, based on due diligence such as screening and risk analysis, fact-finding, dialogue, and engagement to assess, when opening accounts or providing credit or other products, whether the business is compliant with the policies of the provider. The due diligence serves to verify whether there is any possible risk of involvement in illegal or controversial activity. It also considers non-sector-specific issues, such as commercial viability and trading performance. For not-for-profit organisations, banks will want to understand the source of income and past and present cashflow trends. 

There are some banks that do have policies restricting the provision of products and services to organisations dealing with firearms, shooting, and ammunition. But with the competitive range of options available, viable businesses and organisations with good governance should still have access to the products they need.

Things to consider

When approaching a lender for new banking or financial services, do consider the following issues:

• Check if the bank has any policies in place that might restrict them engaging with recreational shooting organisations.
• Ensure you have all relevant documentation to hand, including information about business structure or organisation’s governance; a detailed description of business activity; cashflow and the source of funds going through the account.
• If you are a voluntary organisation, you can visit UK Finance’s dedicated website here. This provides lots of useful information, including an account opening checklist.
• If you are a commercial business, you can visit the Better Business Finance website, which includes a guide to opening a business current account.

For more information, contact me here.