We completely understand that it can feel frustrating to go through the entire reporting process if your association is so small that you barely have any activities beyond maybe a couple per year. But once you have a bank account, you are subject to the exact same rules as all other associations (networks, communities, organizations, councils, collaborations, etc.). That’s simply how the legislation works. There’s no distinction between small and large entities when it comes to customer due diligence.
Increased effort from the EU
The EU has—rightfully—tightened efforts in the fight against money laundering and terrorism financing. As a result, the Danish Financial Supervisory Authority and the Data Protection Authority are required to step up their enforcement. This includes legislation mandating that banks must have a much deeper understanding of their customers than before. And this applies to all their customers—private individuals, associations, and businesses alike, large and small. Part of this process involves requesting all of this information about your association and the individuals behind it.
Every little bit helps.
It might seem excessive if you're just a small association that’s always operated quietly without much fuss. But fraudsters behind both small and large-scale schemes don’t just target big associations or businesses when laundering money or covering their tracks en route to funding terrorism. They’re creative and devious, and they can exploit even small associations, companies, and individuals as part of a larger fraud scheme. So just as many small streams can fuel large-scale crime, many small streams can also help prevent it.
We love Denmark’s rich association culture
No one—not the banks, not Unioo, and probably not even Danish lawmakers or the EU—are trying to discourage the spirit of Danish volunteerism. Quite the opposite. The legislation exists to protect all of our money and data. The banks require annual reporting from associations in order to comply with this legislation. And Unioo is trying to help associations (and thereby the banks) carry out the large task handed down to them from above. We collect data and ensure security. All of us are doing what we can with what we have.
The alternative
The only alternative to going through the reporting process is to withdraw your funds from the bank or use a private account. But we naturally don’t recommend this unless your community and activities are essentially private in nature.
Support
In this help article, we offer some tips and guidance on how to approach the process when you feel like you're hardly a real association, but still required to submit a report.
We hope this article has helped and that you can find the courage and motivation to complete the reporting process.