“Affairs Ministry” indicates approval of charitable association head or treasurer for internal spending

“Affairs Ministry” indicates approval of charitable association head or treasurer for internal spending
The Ministry of Social Affairs, through the Charitable Societies and Endowments Administration, has issued a directive to all registered charitable organizations. It mandates that any internal disbursement, including salaries, wages, monthly bonuses, aid grants, internal projects, or other financial matters, must receive the approval and signature of the Chairman of the Board of Directors or the Treasurer, before the disbursement process can proceed, revealed sources from Al Jarida.

According to sources from the Ministry of Social Affairs, revealed that the Ministry has completed an automated link with local banks to streamline the approval process for internal disbursements.

This new system aims to speed up approvals and prevent disruptions to the operations and projects of charitable associations. The Ministry also clarified that this measure is not intended to restrict associations, but to safeguard them from potential errors that could impact their future or harm charitable work.

Moreover, The Ministry emphasized that prior approvals for internal disbursement authorizations apply to any amount, regardless of its value or the disbursement method, whether by cheques or other means.

Furthermore, The Ministry stated, that the prior approvals procedure was implemented based on a recent circular from the Central Bank, aimed at tightening control over the process of disbursing internal funds, ensuring they remain under state supervision.

This is similar to the approvals that charitable societies must obtain from the Ministries of Social Affairs and Foreign Affairs, before implementing external projects.

Elaborating further, The Ministry stressed that a series of measures will be implemented in the current and in the future too, to strengthen oversight of association activities, aiming to protect them from risks of money laundering or terrorism financing.

This action follows financial concerns raised by international organizations regarding some associations, prompting state agencies, particularly those connected to these organizations, to establish stringent regulations and issue detailed circulars. These measures are intended to ensure full transparency in fund circulation and to prevent similar concerns from arising in the future.

Additionally, the sources also disclosed that the Ministry’s Department of Civil Society Associations has started enforcing the circular requiring prior approval for internal spending across all registered associations. They emphasized that any internal expenditure now requires the Ministry’s approval, as local banks will decline transactions for associations lacking this authorization.