Amidst the challenges faced by the people of Gaza, including famine and bombings by Israel, various Muslim charities and organizations are striving to provide aid and support to those in need.
However, many of these organizations have encountered difficulties as banks, in the past year, have shown reluctance to work with Muslim-run charities, particularly those focusing on Gaza. This trend has come to be known as “Muslim while banking”.
“We used to joke that we had 99 problems and payments wasn’t one of them when we started our company, and that quickly changed,” says Amany Killawi, co-founder of LaunchGood, a crowdfunding platform for Muslims. “I do feel there’s additional scrutiny on Muslim organizations.”
LaunchGood is just one of the organizations grappling with account closures and disruptions in services, with banks seemingly hesitant to engage with Muslim-run charities amidst the ongoing debate on Israel and Palestine.
Killawi explains, “You have two problems in our space: Most banks are very risk-averse. They don’t want to support humanitarian work, even though it is all registered charities in good standing that have gone through vetting. The other issue is the politicization of humanitarian aid.”
Claims from pro-Israel actors that Muslim organizations are supporting armed groups through their aid to Gaza can lead to unwarranted scrutiny and account closures, without proper investigation.
LaunchGood has faced account closures not only from financial services but also from other platforms like Wise and Cledara. While Wise emphasized non-discrimination in its services, Cledara did not respond to requests for comment.
Killawi raises concerns about the growing trend of discriminatory practices in banking, with a significant impact on Muslim and immigrant-owned businesses. The closures aren’t isolated incidents, but part of a larger discriminatory trend affecting Muslim-run organizations.
Efforts to address these challenges have been made by lawmakers like Ilhan Omar, who questioned major banks about discriminatory practices against Muslim Americans. The practice of account closures and restrictions disproportionately affects Muslims, hindering their participation in the economy.
Youssef Chouhoud, an expert in political science, highlights the alarming rate at which Muslim business owners and nonprofit executives face obstacles in banking transactions. The discriminatory practices need attention and action to ensure fair treatment for all.
Altikriti’s experience with account closures due to false labeling as a terrorist organization sheds light on the broader issue of banks’ role in stigmatizing Muslim-run entities. The challenge remains in finding solutions to reverse this trend and promote fair banking practices for all.
