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
GAO Asks Banking Agencies to Revise Regulations to Address Derisking
The U.S. Government Accountability Office (GAO) is reminding the Federal Deposit Insurance Corporation (FDIC) and the Board of Governors of the Federal Reserve System (Federal Reserve) that it should undertake a review of Bank Secrecy
C&SN Pens Open Letter to FFIEC on Bank Examination Manual
Following a significant delay in the update of the nonprofit organization (NPO) sections of the Federal Financial Institutions Examination Council's (FFEIC) Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Examination Manual (Manual), and in light of the urgent
FFIEC Issues Partial Update to Bank Examination Manual
On April 15, 2020, the Federal Financial Institutions Examination Council issued an partial update to the Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Examination Manual (Manual), revising the introductory sections of what has become known as the
U.S. Treasury, FATF Support Financial Access for Nonprofits Battling COVID-19
In response to the COVID-19 pandemic, both the U.S. Department of Treasury and Financial Action Task Force (FATF) issued statements that emphasize the urgent need for aid in response to the COVID-19 pandemic, calling for
National Counter-Terrorist Finance Strategy Cites Important Role of Charities
In an update to its National Strategy for Combating Terrorist and Other Illicit Financing, the U.S. Treasury Department cites the important role of charities in countering terrorism, emphasizes the use of the risk-based approach, and
ILLICIT CASH Act Introduced in Senate
After circulating a discussion draft for several months, the Senate introduced its version of a Bank Secrecy Act bill with the ILLICIT CASH Act (S. 2563) on September 26, 2019. Congressional efforts to update