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
New OCC Rule Will Prohibit Banks from Denying Services in Coordination with Others
A final rule issued by the Office of the Comptroller of the Currency (OCC) on January 14, 2021, prohibits the largest U.S. banks from denying financial services in coordination with others. The rule applies only
C&SN Submits Comments on Financial Regulatory Proposals
In comments submitted in response to regulatory proposals on anti-money laundering (AML) effectiveness and on fair access to financial services, Charity & Security Network (C&SN) has highlighted bank derisking of nonprofit organizations (NPOs), its impact
Language on Charities and Derisking in NDAA
U.S. Treasury will be required to develop a derisking strategy under the banking provisions contained in the fiscal year 2021 National Defense Authorization Act (NDAA). That mandate is part of a larger section of language
Proposed Amendments Would Provide Information on Impact of Sanctions, Lessons Learned from CT Policies, and New Strategy to Reduce Derisking
Nonprofit organizations (NPOs) that have been inhibited in their work due to national security laws and policies could see some positive developments in three House of Representatives-passed amendments to the National Defense Authorization Act
Abstract: Report Does Deep Dive on Derisking of Humanitarian Aid to Syria
A new report takes a deep dive into the processes surrounding the challenges facing nonprofit organizations (NPOs) trying to move funds abroad for programs in Syria. Invisible Sanctions: How over-compliance limits humanitarian work on Syria,
Abstract: Report Gives Recommendations on Payment Flows for Humanitarian Aid in Syria
A new report offers advice for banks, humanitarian organizations and donors to work together to move humanitarian program funds to aid civilians in need in Syria while complying with European Union (EU), U.S., and United