Fri Nov 29 18:13:50 UTC 2024: ## Muslim Charities and Businesses Face Widespread Banking Discrimination
**Washington, D.C.** – A growing number of Muslim-owned businesses and charities are reporting discriminatory practices by financial institutions, resulting in the closure of accounts and restricted access to essential banking services. This “de-risking” practice, ostensibly aimed at mitigating financial risk, disproportionately affects Muslim and immigrant communities, sparking concerns about religious and ethnic profiling.
The issue has been exacerbated by the ongoing conflict in Gaza. Numerous Muslim organizations providing humanitarian aid to Palestinians have seen their bank accounts closed, often without explanation. Amany Killawi, co-founder of LaunchGood, a Muslim crowdfunding platform, reports similar experiences, citing account closures with various financial services, including Wise and Cledara. She alleges that fear of negative publicity surrounding their work in Gaza, fueled by pro-Israel media campaigns, is a key factor driving these decisions.
This isn’t an isolated incident. A study by the Institute for Social Policy and Understanding reveals that Muslim Americans are twice as likely as the general population to report banking difficulties. Assistant Professor Youssef Chouhoud highlights a “suspiciously high rate” of account closures among Muslim-run nonprofits, with difficulties ranging from international transaction restrictions to arbitrary flagging of transactions. The Wall Street Journal reported at least 30 similar incidents involving US and European humanitarian organizations aiding Gaza since October 2023.
The impact extends beyond financial hardship, hindering business operations and everyday life. Anas Altikriti, CEO of The Cordoba Foundation, details his experience of having 18 accounts closed since 2014 after his and his family’s accounts were inexplicably shut down by HSBC. He discovered this was due to his organization being wrongly labeled a terrorist organization by a risk analysis company.
Congressional action is underway. Rep. Ilhan Omar led a group of lawmakers demanding information from major banks regarding discriminatory practices against Muslim Americans. While some banks declined to comment, the issue has sparked discussions on Capitol Hill, with efforts underway to address the systemic problem. LaunchGood is actively developing its own payment processor to bypass these discriminatory practices. The outcome remains uncertain, however, influenced by the political climate and ongoing debates surrounding Israel and Palestine. Advocates remain determined to raise awareness and advocate for fair banking practices for all.
First Piper 