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
C&SN Submits Comments for FATF Update to Best Practices Paper on Combatting the Abuse of NPOs
In Oct. 2022, in response to a call for input, the Charity & Security Network (C&SN) submitted comments to the Financial Action Task Force (FATF) as part of FATF’s “project to review and update the
Financial Access and De-Risking: Moving Toward Solutions for Nonprofit Organizations
This issue brief summarizes systemic financial access and de-risking challenges faced by nonprofits, identifies the sources of these challenges, addresses impacts on nonprofit operations, and explores solutions for addressing these challenges. The brief updates a
Synopsis: Unpacking Treasury’s 2022 National Strategy for Combatting Terrorist and Other Illicit Financing
On May 13, 2022, the Treasury Department published their 2022 National Strategy for Combatting Terrorist and Other Illicit Financing (2022 Strategy) and accompanying Press Release. The 2022 Strategy aims to enhance the United States (U.S.)
Unpacking Treasury’s 2022 National Strategy for Combatting Terrorist and Other Illicit Financing
By Ashleigh Subramanian-Montgomery Background On May 13, 2022, the Treasury Department published their 2022 National Strategy for Combatting Terrorist and Other Illicit Financing (2022 Strategy) and accompanying Press Release. The 2022 Strategy aims to enhance
ECNL Releases Practical Guidance for CSOs to Navigate Access to Financial Services
By Ashleigh Subramanian-Montgomery On April 29, 2022, the European Center for Not-for-Profit Law released their Practical Guidance resource, Navigating access to financial services for CSOs: a practical guidance and accompanying video. The Practical Guidance highlights
Broad-Based Sanctions on Russia Undercut Russian Civil Society When It Is Needed Most
By Gabe Murphy Coverage of the war in Ukraine has rightly emphasized the critical role of civil society in responding to this moment. Both local civil society groups and international nongovernmental organizations have mobilized to