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
Banking Agencies Issue Fact Sheet on Bank Due Diligence for NPOs
A Joint Fact Sheet on Bank Secrecy Act Due Diligence Requirements for Charities and Non-Profit Organizations (NPOs) published November 19, 2020, marks the first time that the banking agencies have acknowledged the internal due diligence
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
Congressional Letters Seek Answers on Derisking
Two letters sent from 18 members of Congress on April 22, 2020, ask three of the nations largest banks and four federal regulators to answer a series of questions about nonprofit organizations' financial access difficulties,
Now Is Not the Time for Bank Derisking of Charities
By Andrea Hall The global pandemic created by the rapid transmission of the novel coronavirus and the resulting outbreak of Covid-19 has affected every sector of the global economy, including nonprofit organizations (NPOs), which carry