Over the past several years, access to financial services have become increasingly difficult for civil society organizations that must conduct international financial transactions in order to operate overseas where their work is needed most. Financial institutions may delay, or refuse to make, transfers between organizations. Sometimes, nonprofit organizations (NPOs) are turned away as customers or have their accounts closed. Remittance services that facilitate fund transfers between diaspora populations and their families are threatened by the international banking system’s growing unwillingness to provide these services.
The U.S. government has said that banks should not “de-risk” but that policy has not been translated into concrete action or regulatory standards that remove current disincentives for banks to provide services to international NPOs. As a result, money will be taken out of transparent, regulated channels, making life more difficult for legitimate NPOs and easier for terrorist financiers.
Featured Resources
‘Let Us Eat’: Kabul Protesters Demand Release of Frozen Afghan Assets – Common Dreams
December 22, 2021 C&SN's Founder and Senior Advisor Kay Guinane is quoted, arguing that while new general licenses issued by the Treasury Department "represent important progress in protecting the lifesaving work of civil society groups
Treasury Takes Important Steps to Address Afghanistan Crisis, But More Must Be Done
Washington, D.C., December 22, 2021 — In response to the U.S. Treasury Department issuing General Licenses 17, 18 and 19, and accompanying guidance, to facilitate humanitarian and other civil society operations in Afghanistan, Kay Guinane,
Federal Bank Examination Manual Chapter on Nonprofit Customers Updated to Reflect a Risk-Based Approach
Federal bank regulators published a long-awaited update to the chapter on nonprofit organizations (NPOs) in the Bank Examination Manual, which governs how federal bank examiners review bank compliance with the Bank Secrecy Act and anti-money
Senate Committee Hearing on Afghanistan Unpacks Challenges Created by Sanctions
October 6, 2021 With Afghanistan facing major economic and humanitarian crises in the wake of the Taliban’s rise to power, the Senate Committee on Banking, Housing and Urban Affairs held a hearing on October 5,
Report Summary: Bank De-Risking of Non-Profit Clients
June 23, 2021 A June report by the European Public Interest Law Clinic of New York University Law School in Paris, in cooperation with Human Security Collective (HSC), ABN AMRO and Dentons Netherlands, offers new
C&SN-Commissioned Report Offers Recommendations for NGO Due Diligence and Risk Mitigation
April 12, 2021 In partnership with the London School of Economics and Political Science, a new report commissioned by the Charity & Security Network titled “NGOs’ Due Diligence and Risk Mitigation: A Holistic Approach” takes