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#2083654 - 06/15/16 08:09 PM Non-Profit Service Club Account
ComplianceGurl, CRCM Offline
Gold Star
Joined: Jul 2007
Posts: 498
Hello,
We have a business checking account for a local non-profit service club, I'll call it ABC Lodge. We have had the account for many years and there are four authorized signers on the account. We just received a visit from someone that belongs to the "Grand Lodge" in another city. He is not an authorized signer on this account. He has given us a letter stating some orders that were in the last executive committee meeting. These orders state that the smaller club, ABC Lodge, is under investigation on how a large amount of funds have been used over the past two years . They are requesting that we freeze the account and allow full access to any information regarding the account they may need. The authorized signers are not cooperating with the "Grand Lodge". We are very unsure of how to proceed. At this point we have told him that we need to do some research and would get back with him. My first instinct is that we either need minutes from ABC Lodge, allowing the Grand Lodge access to their account, OR a subpoena.
Thoughts? Thank you!!

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#2083669 - 06/15/16 08:29 PM Re: Non-Profit Service Club Account ComplianceGurl, CRCM
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,700
Cape Cod
I don't think you can act on the instructions of someone purporting to represent a "parent" organization. But check with bank counsel. My gut tells me you'll need a subpoena to grant the Grand Lodge access to account information and some other form of court order to freeze the account, unless the local lodge cooperates.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
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#2083677 - 06/15/16 08:42 PM Re: Non-Profit Service Club Account ComplianceGurl, CRCM
ComplianceGurl, CRCM Offline
Gold Star
Joined: Jul 2007
Posts: 498
Thank you John for such a quick response!

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