• Study reveals that 42% of charities surveyed as part of a study report that their bank accounts were shut down without explanation, while 68% have faced long delays in opening accounts
• 'For over two decades, Muslim-led charities have struggled with de-risking, yet, despite the critical nature of this issue, it has not received the attention it deserves,' Muslim Charities Forum's policy and advocacy lead tells Anadolu
• 'Financial access issues for Muslim charities ... threaten to deprive some of the world’s most vulnerable people of aid,' says Conciliation Resources Director Teresa Dumasy

LONDON

Muslim-led charities in the UK are facing widespread financial discrimination, with banks disproportionately restricting their access to essential services, according to a new report released Wednesday by the Muslim Charities Forum (MCF). 

The study found that 42% of surveyed charities had their accounts closed without explanation, while 68% experienced prolonged delays in opening accounts — some waiting years. 

These disruptions, including frozen international transfers and delayed payments, have severely hampered aid efforts in conflict zones like Syria, Palestine, and Pakistan, delaying life-saving support such as medical supplies and refugee assistance. 

The report attributes these challenges to overzealous counter-terrorism financing measures, structural Islamophobia, and a lack of transparency within the banking system. 

"For over two decades, Muslim-led charities have struggled with de-risking, yet, despite the critical nature of this issue, it has not received the attention it deserves," said Abdulsami Arjumand, MCF's policy and advocacy lead.

Speaking to Anadolu, Arjumand highlighted what he called glaring inconsistencies in the UK’s approach to financial restrictions, pointing to the swift government response to the closure of former UKIP leader Nigel Farage’s account and the resulting minor banking reforms. He noted that the same urgency has not been extended to challenges faced by Muslim charities. 

“When Nigel Farage's account was closed, government ministers were quick to raise concerns and push for reform. Meanwhile, Muslim charities have been battling de-risking for decades, yet it has not received the attention it deserves,” he said.

"We urgently need stronger protections for charities and their resources. Without them, the most vulnerable will continue to pay the price of current banking policies," he added.  

Systemic barriers highlighted

The report, titled The Landscape of Debanking within Muslim Charities & Its Impact on Charitable Activities, offers a detailed analysis of the barriers posed by arbitrary account closures, prolonged delays in account openings, and frozen transactions.

Based on 19 survey responses and follow-up interviews, the report paints a stark picture of how “de-risking” policies disproportionately target Muslim charities.

These policies, the report asserts, stem from the broad application of counter-terrorism financing and anti-money laundering regulations, which banks interpret in ways that restrict nonprofit organizations.

Among the findings, 42% of charities reported being threatened with account closures, fueling widespread fear and uncertainty in the sector. Another 42% faced prolonged delays or outright freezing of international transactions.

One charity described how a 12-month delay in releasing funds jeopardized medical treatment for Syrian orphans battling cancer in Türkiye. 

Others, working in conflict zones including Syria and Palestine, reported heightened scrutiny and being classified as high-risk clients.

The report criticized financial institutions for relying on unverified media sources during “background checks,” disproportionately profiling Muslim-led organizations.   

Aid efforts under threat

The banking restrictions, the report warns, are directly undermining critical humanitarian work in crisis zones. 

Delays in transactions have disrupted deliveries of food, medicine, and shelter, while some charities have struggled to pay local healthcare staff, leading to gaps in essential medical services.

In one instance, a charity supporting a rural hospital in a conflict zone was unable to pay its staff, forcing some medical workers to abandon their posts. 

When barred from traditional banking channels, charities have resorted to carrying cash across borders or relying on informal financial systems, raising both security and regulatory risks — a practice that goes against financial institutions’ stated goals of preventing money laundering and financial crime.

Account closures without explanation have also created misplaced suspicion among donors, discouraging contributions and jeopardizing projects as supporters fear their contributions are at risk or question why projects face delays, leading to donor dropouts.   

Calls for urgent reform

In the report’s foreword, Teresa Dumasy, who heads Australia-based group Conciliation Resources, acknowledged the importance of counterterrorism measures but warned against their indiscriminate application.

“Financial access issues for Muslim charities ... threaten to deprive some of the world’s most vulnerable people of aid,” she wrote.

Fadi Itani Obe, the CEO of Muslim Charities Forum, underscored the rigorous compliance checks and financial audits already conducted on Muslim-led charities. Yet, they remain subject to opaque, overly broad risk assessments, he argued. 

“The Muslim charitable sector saves lives by delivering essential aid in challenging regions. Debanking only hampers these efforts, fueling instability and leaving vulnerable communities stranded.”