How to switch to Westpac. A guide for not-for-profit and community organisations.

How to switch to Westpac. A guide for not-for-profit and community organisations. Proudly supported by:

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Not all banks are the same. Westpac has transformed banking for community groups in Australia, rethinking and reengineering bank products, providing reduced-fee accounts, accrediting Social Sector bankers in branches across the country, and providing financial help and capacity building support. Now you know why you should switch to Westpac. Here s how. Need to know. Does this guide apply to my organisation? This guide is for incorporated associations that have been established in Australia. If your group is unincorporated, or a cooperative, or was formed overseas, slightly different rules apply. Please ask at the branch for further clarification. Pick the easiest route. The process of switching banks will be much easier if you: Read this document (or at least the checklist at the back) before you start so you know what s involved. Make sure you have all the information and forms you need before you go into the branch. Make sure that at least two of the organisation s directors (board/committee members) or a director and the company secretary can go into the branch with you on the day you open the account. This is not strictly necessary as they can be verified later but you won t be able to operate the account until they have been. How strict are the rules? There are strict rules for opening bank accounts in Australia. Westpac is required, by law, to ensure that your account will be operated by a legitimate community organisation. If you don t have the right documents, or the specified process won t work for your organisation for some reason, call your local branch to discuss. How long is it going to take? You ll need to spend around 30 minutes to an hour in a Westpac branch. If you bring all the right information and people to that appointment, your account will be opened immediately. You can expect to receive all credit and debit cards and chequebooks, and for internet banking to be up and running, within 10 days of opening the account. Open before you close. If you re switching banks, make sure you get your new Westpac account up and running before you close your old ones. 1

Step 1: Get Prepared. There are a few pieces of information that you should gather together before you go into your branch. You also need to do some thinking about what sort of account(s) you need, and how you want them to be used. Things to collect. When you go into the branch, you will need to provide some information about your organisation (which can all be found on your organisation s registration documentation): Full name of the organisation. ABN (if any). Organisation type (i.e. incorporated association). Place of registration/incorporation. Date of registration/incorporation. Incorporation number (the identification number issued upon incorporation). The organisation s address note that this cannot be a post office box. If your organisation does not have an address, then you will need to provide the address of the Public Officer or Office Holder. If the organisation does not have a Public Officer/Office Holder, then you will need to provide the address of either the Chair/President, Secretary or Treasurer of the organisation. Full names of at least two of your organisation s directors (board/committee members) or a director and the company secretary, plus their addresses and dates of birth (these people will be the signatories to operate the account). You will also need to provide some documentary evidence that the people who go to the bank to open the account are authorised to do so; the easiest way to do this is to make a resolution at your board/ committee meeting and get a copy of the minutes to take in to the bank. TIP: It can be a good idea to take your organisation s incorporation certificate in to the bank with you. This will contain all the information that you need to provide about your organisation. It will also be useful in case the bank requests some documentary evidence of your organisation s not-forprofit status. Things to decide. Who s going to go to the bank branch? If you want your account to be activated straight away, make sure that at least two of your organisation s directors (board/committee members) or a director and the company secretary can come along they will need to be verified by the bank (see step three for a list of documents they ll need to bring) before the account can be used. If you re happy to wait a while for your accounts to be activated, they can go in to a branch later to be verified. Anyone else that you would like to use the account(s) will also need to be verified so if you want them to have access to the accounts straight away, it s best to have them come in to the branch the day you open the account. 2

What accounts will you open? The easiest way to get started is to open a Community Solutions Account (including a chequebook, debit/credit cards and internet banking). If you think you might want to open another account, such as a term deposit, you might want to do some research about what s available. Westpac has developed a suite of banking products just for community organisations go to www.westpac.com.au/socialsectorbanking to see what s available. Alternatively, you can talk this through with the Social Sector Banker or Bank Manager you meet with when you go into the branch. What will your instructions be on how to operate your account(s)? You will also be asked to set authorisation requirements and limits for your new account(s). You might want to set a blanket authorisation, or different authorisations for different accounts. You should also think about who will be able to sign cheques on your organisation s behalf, who will be given access to your internet banking (and what levels of access they should be given see steps six and seven), and to whom any debit/credit cards will be issued. TIP: Even if you re not opening a new account, it s worth reviewing your financial management policies and authorisations every year to ensure they re still working well. You should aim to strike the right balance between risk management and smooth operations for example, if only two people are allowed to sign cheques for your organisation, and those two people live on opposite sides of the city, it s going to be hard to pay people in a timely manner. This is where internet banking can help just ask at the branch for further information when you open the account. Action List. Gather together details about your organisation s legal structure: its name, ABN, place of registration/incorporation, incorporation number and address. If possible, make a copy of your incorporation certificate. Make a resolution at your next board meeting about opening a new bank account for your organisation at Westpac and authorising at least two of your board/committee members to do so. Take a copy of the minutes. Obtain the full names, addresses and dates of birth of your two designated directors (board/ committee members) or a director and the company secretary, as well as anyone you would like to be able to use your new account(s) immediately. Make sure they are able to attend an appointment with the bank at the same time. Think about the types of accounts you would like to open with Westpac and what sort of authorisations you want to set for each account. Decide who you want to have immediate access to the accounts, and which two directors (board/committee members) or a director and the company secretary will be authorised to open the account. 3

Step 2: Make Contact. Call your local Westpac branch to make an appointment. Go to www.westpac.com.au and type your postcode in the box on the right-hand corner of the page to find the phone number for your closest branch. When you call, say that you are a Community Group and you want to open an account. They should make an appointment with you to discuss the account options available to your organisation. The appointment should take around 30 minutes to an hour, depending on how many accounts you want to open and how many people you want to authorise as account users. Action List. Check on the availability of at least two of your organisation s directors (board/committee members) or a director and the company secretary, as well as anyone you want to have immediate access to your new account(s). Make an appointment with your local Westpac branch. 4

Step 3: Verify your Organisation & Office-holders. The main task on the day of your appointment in your branch will be to verify your organisation s identity and contact details, and those of your organisation s directors (board/committee members). Verifying your organisation. Westpac is required by law to ensure it follows rigorous processes to properly identify new customers, including not-for-profit organisations, when they set up a new account. This is the most important step in opening a new account once your organisation has been given a customer number, it s relatively easy to add accounts and change authorised people and signatories. Bring in all the information we listed in step one your organisation s name, ABN, incorporation certificate/number and address. Your banker will carry out a search of the ASIC/Fair Trading files to verify the name and not-for-profit status of your organisation. The bank must also collect the details of two of your organisation s directors (board/committee members) or a director and the company secretary, as outlined below. The process will be easiest if these people come in when you go into the branch to open the account, along with anyone you wish to be able to use the account straight away. They will need to bring the appropriate identification documents with them (see step four). Verifying your board members. The identities of at least two of your organisation s directors (board/committee members) or a director and the company secretary will need to be verified in order for your account(s) to be activated. To complete the verification process, a Westpac banker will need to sight a number of official identification documents. The documents need to be current (not expired), original (not copies), written in English (or translated by an accredited translator), and must collectively show the person s full name, date of birth and address (though not all will show all of these details). You must show at least 2 documents from Table A or Table B. At least one document must be a primary identification document from Table A. Table A - Primary identification document Birth certificate Australian (full birth certificate or extract birth certificate issued by State/ Territory Registry of Births, Deaths and Marriages) Birth certificate Foreign (issued by a foreign government, the United Nations or an agency of the United Nations; must be a full birth certificate) NSW birth card* Citizenship certificate Australian Citizenship certificate Foreign (issued by a foreign government) Driver's licence Australian* Learner's driver's licence Australian* Passport Australian (can either be current or expired within the last 2 years; must not be cancelled, defaced or mutilated)* Passport Foreign (issued by a foreign government, the United Nations or an agency of the United Nations; must not be cancelled, defaced or mutilated)* Travel document Foreign (issued by a foreign government, the United Nations or an agency of the United Nations)* Boat licence Australian* Taxi licence Australian* Pension card Centrelink Pension card Department of Veterans' Affairs KEYPASS photo ID card* 18+ Proof of age card* National identity card (issued by a foreign government, the United Nations or an agency of the United Nations)* NSW RTA photo card or Proof of age card* * Must contain photograph and signature 5

Table B - Secondary identification document Driver's licence Foreign* Security guard's licence* Shooter's/firearms licence* Blind Citizens Australia ID card* Multiple Sclerosis Society photo ID card* Public Service employee ID card Australian* Student ID card Australian higher education (TAFE or University)* Working With Children check card (Blue card) QLD, VIC, WA* Australian Taxation Office (ATO) notice issued within the last 12 months which shows your name and residential address Financial benefits notice issued by a Commonwealth, State or Territory government issued within the last 12 months which shows your name and residential address (e.g. a notice from Centrelink) Financial institution passbook (Australian) which must be current and have a black light signature Utilities notice issued by a local government or utilities provider within the last 3 months which shows your name and residential address Health care card Centrelink Health care card Department of Veterans' Affairs Marriage certificate Australian Medicare card Commonwealth seniors health card or State seniors card * Must contain photograph and signature Note that the documents need to be shown in person at a Westpac branch. If the person who needs to be verified can t attend the bank for some reason, or they re unable to provide the original documents, call your branch to see what other arrangements can be made. Future Westpac customers and account signatories can be verified at any branch so you don t all need to go to the same branch. Just let the principal branch know when you have completed the identification process. If they are not present during your appointment with the bank, you will need to supply: their full name, their residential address (not a PO box), and their date of birth. Note too that different verification rules apply to people who are under 18 years of age, people who are living in remote indigenous communities, recently arrived migrants, and refugees. Check the website here to find out more: http://www.westpac.com.au/about-westpac/the-westpac-group/ corporate-governance/aml-counter-terrorism/aml-verification-standards/ You will be given an eight-digit identification number for each person, plus a pre-filled Notice of Authority form; they should take those into a Westpac branch to be verified, along with the appropriate identification documentation as outlined earlier. TIP: Anyone who has been identified/verified by Westpac in the previous three years will not have to do so again (though they will still have to bring in some form of ID). But you will still need to have at least two directors or a director and the company secretary come into the bank to open the new account. 6

Action List. Bring your incorporation certificate/organisation information, and details of at least two of your directors or a director and the company secretary (it s best if they can come in person), to your appointment with the bank. Ensure that all those who attend the appointment and are to be associated with the account bring identification documents with them, unless they are an existing or previous Westpac customer and have therefore already been verified (though they will still need to bring some form of ID). If one or a number of the people who are to be connected to the account are unable to attend your appointment with the bank, and have not yet been verified by the bank, provide their details to your banker and collect an identification number and pre-filled Notice of Authority form. Provide these to the people who need to be verified and ask them to attend a Westpac branch with the appropriate identification documents. 7

Step 4: Open a Community Solutions Account. Any not-for-profit group in Australia is eligible for a reduced-fee Westpac Community Solutions Account 1. This is the best account to operate as your organisation s everyday account. It can be connected to credit/debit cards, chequebooks and internet banking. You may want to open more than one Community Solutions Account for example, you might want one account for petty cash, and another for all other transactions. It s simple to open several accounts at once just tell the banker you meet with that s what you want to do. You can also open other accounts term deposit, a Westpac Community Solutions Cash Reserve account (a higher interest savings account) and apply for a credit card at this time if you wish. The banker will ask if you want a debit card, chequebook and internet banking linked to your account(s). If so, the banker may need to fill in some extra forms and you will need to tell them what sort of cheques you would like issued (open or crossed cheques). TIP: Customers use crossed cheques to reduce the risk of theft and fraud. Action List. Tell your banker how many and what sort of accounts you want to open. Tell your banker if you want debit cards, chequebooks and internet banking linked to your account(s). Ask your banker for a temporary chequebook (contains eight cheques) if you think you will need to use them before your official chequebook arrives. 1 For full terms and conditions please contact us. 8

Step 5: Select security settings. You must have at least two directors (board/committee members) or a director and the company secretary listed on your new account s Notice of Authority. These are the people who are authorised to operate the account. In fact, you can have as many people listed as you like, though each will need to be verified by the bank. Note too that you can easily add more people later. You need to tell the bank what security settings you want on your account(s). You should aim to strike a good balance between protecting your organisation from theft and fraud and ensuring you don t tie everyone up in so much red tape that it s virtually impossible to make a payment in a timely manner. Your authorisation limits can be: Overriding i.e. applying to every account your organisation holds; or Tailored to each specific account. You will need to specify how many authorised signatories will be required for transactions (generally, or over a certain amount) on each account, or on all accounts. Note that this only applies to transactions not carried out over the internet internet banking transactions are treated separately (see step six). TIP: Anyone who appears on the Notice of Authority can request a report on all the security settings for your organisation s accounts, detailing how many and what type of accounts are held, and who is authorised to do what. It s good practice for the treasurer to request such a report at least once a year and to present the report to the board/committee. It s a good way of picking up out of date or inappropriate authorisations. Action List. Tell your banker what security settings and authorisations you would like your new account(s) to have. (Refer to your organisation s Financial Control policies. If you don t have such policies in place, you can find a sample policy at www.ourcommunity.com.au/policybank.) 9

Step 6: Internet banking security settings. Internet banking rules operate separately from the general security settings outlined in step five. You will need to specify who will be the administrator of your organisation s internet banking they will be responsible for adding and deleting users and setting limits on what users can do within the account. The administrator (and indeed all users) will need to be verified by the bank (as outlined in step three) and sign the Business Online registration form before they will be able to log on to the account. Users can be specified as: No Access the user will not be able to see the account at all. Non Value access (Limited Access) the user can see balances and transaction information and can draft but not make payments. Value access (Full Access) the user can make payments and transfers. Value access may not be available on some account types such as credit cards and certain loans. You may wish to provide extra security for your internet banking accounts by specifying that all transactions, or all transactions over a certain amount, require authorisation through a token. The bank can issue as many tokens as you wish to whoever your administrator specifies, as long as they have been verified. When you set up internet banking for your organisation, you ll also be given a number that you can use for telephone banking. TIP: There are numerous benefits to transacting online. Online banking allows you to create an automatic electronic paper trail for all your transactions (much easier to track and audit than receipts in a shoebox) and also allows you to be more responsive with your money for example, if you have some funds lying idle that you aren t going to need for a few months, you can quickly transfer them over to an interest-bearing account. Action List. Tell your banker what security settings and authorisations you would like in relation to your internet banking. 10

Step 7: Wait for your chequebook/cards/ internet banking tokens to arrive. Once your organisation has been verified, and the identities of the minimum number of Authorised People (i.e. at least two of your directors or a director and the company secretary) have been verified, and you have provided your account instructions, your organisation s new account will be activated. You will receive a letter confirming that the account is open, listing all your account identification numbers and details, and noting if there are any tasks still outstanding (e.g. if there are some people who are linked to your account who are still to be verified). Below is some information on what will happen if you have ordered chequebooks or debit/credit cards, and/or if you have asked that internet banking be activated. Cheques. Your chequebook will take seven to ten days to arrive. It will be mailed to your organisation s official address. Temporary chequebooks containing eight cheques can be taken away with you when you open the account this is a good option if you think you might need to write some cheques before the chequebook arrives. Debit Cards. Your debit cards will take seven to ten days to arrive, so long as cardholders have been verified (see step three). Cards will be sent to the addresses of the people named as cardholders, rather than the organisation. If you have specified that two or more signatures are required for transactions on a particular account, no debit cards can be issued on that account. Internet Banking. It will take seven to ten days for your internet banking pack, containing instructions and tokens, to arrive. The pack will be sent to your organisation s official address. Credit Cards. You will need to fill out a separate application form to apply for a credit card(s). You can do this at the same time as opening your other accounts ask the banker to help you with this. 11

Step 8: Close your old account(s). It s up to you to close your old account(s) and bring the money across to your new Westpac account(s). Unfortunately, no system currently exists in Australia to make that process simple and seamless; there are no forms you can fill in to authorise the bank to do it on your behalf. Depending on your previous bank s rules, you ll probably need to have at least one signatory go in to a branch in person to close the account, though you may be able to have the other signatories sign a letter (on letterhead) authorising the closure of the account. To save you time, call up and ask what s required before you go in to the branch. While you may be able to have any remaining funds paid out in cash, it s best, from a safety and audit point of view, to request a bank cheque be made out to your organisation. This can be lodged into your new account. Another option would be to write a cheque to your organisation using your organisation s own chequebook this will allow you to avoid the bank cheque fee, but you will still have to wait three business days for it to clear. Alternatively, you could transfer any remaining funds to your new account via an electronic funds transfer (EFT) and go in to close the account later. This will speed up the process a little, but it will still take around 48 hours for the money to reach your new account. TIP: Make sure you carry out a cheque reconciliation before you close your old account(s) to ensure you pick up any outstanding cheques (bouncing cheques can be harmful for your organisation s reputation). Also, check your statement (go back a full twelve months) for any direct debits. Give each recipient a call to notify them of your organisation s new bank account. Action List. Carry out a cheque reconciliation on any existing accounts, and check your statements for direct debits as well. Call the bank and ask them what is required in order to close an account. Once your cheque book/cards/internet banking tokens arrive and are active, then close your old account(s). 12

Checklist. Prepare. Gather together details about your organisation s legal structure: its name, ABN, place of registration/incorporation, incorporation number and address. If possible, make a copy of your incorporation certificate, or take the original. Think about the types of accounts you would like to open with Westpac and what sort of security setting you want for each account. Decide who you want to have immediate access to your new account(s). Collect the full names, addresses and dates of birth of at least two of your organisation s directors (board/committee members) or a director and the company secretary, as well as anyone you would like to be able to use your new account(s) immediately. Ensure you have the right documents to enable the account holders to be verified (up to 100 points). Make contact. Check on the availability of at least two of your organisation s directors or a director and the company secretary (the minimum required to start a new account), as well as anyone you want to have immediate access to your new account(s). Make an appointment with your local Westpac branch. Go to the bank. Bring your incorporation certificate/organisation information (or copy of), and details of at least two of your directors or a director and the company secretary (it s best if they can come in person), to your appointment with the bank. Ensure that all those who attend the appointment and are to be associated with the account bring identification documents with them, unless they are an existing or previous Westpac customer and have therefore already been verified (though they will still have to bring some form of ID). Tell your banker how many and what sort of accounts you want to open. Tell your banker if you want debit cards, chequebooks and internet banking linked to your account(s). Apply for credit cards, if you want one. Ask your banker for a temporary chequebook (contains eight cheques) if you think you will need to use them before your official chequebook arrives. Tell your banker which security settings and authorisations you would like your new account(s) to have. Tell your banker which security settings and authorisations you would like in relation to your internet banking. Then... Carry out a cheque reconciliation on any existing accounts, and check your statements for direct debits as well. Call your old bank and ask them what is required in order to close an account. After your chequebook/cards/internet banking tokens have arrived and are active on the new account(s), then close your old account(s). 13

This guide was written by Our Community on behalf of Westpac. Our Community. Our Community, through its innovative website www.ourcommunity.com.au, extensive resources and information services, is helping to build the capacity to strengthen the community by providing the resources that enable Australia s community groups to grow stronger in every Australian state and territory. Our Community is a one-stop gateway for practical resources, support and links between community networks and the general public, business and government. Over 65% of Australians belong to one or more of the 600,000 community groups that exist in this country. These organisations are absolutely vital for the development of a thriving and vibrant Australia and Our Community assists community groups to meet the challenges they face by investing its efforts in providing practical products and services. These include helping groups to find funds, members, board members and volunteers, to operate more effectively and efficiently and to source good-value supplies. For more information visit www.ourcommunity.com.au Westpac Social Sector Banking. Westpac has been working with community organisations of all sizes for years and whether it be local sports clubs, schools or national aged care facilities, we ve learned that the demands and opportunities of the not-for-profit sector are both unique and diverse. So we offer more than just banking. We are committed to: Understanding your unique day-to-day financial workings and requirements. Designing and innovating our products and services to align with your needs. Providing specialist bankers, who are dedicated to servicing the not-for-profit sector. Connecting you with the education, training, resources and other areas beyond just banking that will help strengthen your organisation and achieve your long-term vision. We want to provide you with the most beneficial banking partnership for your organisation. For more information visit www.westpac.com.au/socialsectorbanking 14

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