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
Perils of Humanitarianism in Today’s World of Conflict – Justice for All Now
March 3, 2021 In this in-depth interview, C&SN Director Paul Carroll joins the host of Justice For All Now Hena Zuberi to discuss C&SN's work to protect and promote the ability of nonprofit groups to
Biden Administration Revokes Terrorist Designation of Houthis
The Biden Administration on February 16, 2021 removed Ansarallah (aka the Houthis) from two U.S. terrorist lists, less than three weeks after the group was added to the lists by the outgoing Trump administration. At
OCC Pauses New Rule Prohibiting Banks from Denying Services in Coordination with Others
The Office of the Comptroller of the Currency (OCC) announced January 28, 2021 that it will pause publication of a final rule that would have prohibited the largest U.S. banks from denying financial services in
Congress Passes AML Act of 2020
U.S. Treasury will be required to develop a derisking strategy under the most comprehensive update to banking regulation since the passage of the PATRIOT Act. The Anti-Money Laundering Act of 2020 was passed as part
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
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