Muslim Charities Face Banking Discrimination Amid Palestinian Aid Crisis

Muslim charities providing aid to Palestinians are facing significant challenges due to discriminatory banking practices, Al Jazeera revealed in an article yesterday.

Many financial institutions have cut off essential services to these organizations, particularly those focused on Gaza, citing a practice known as “de-risking.” This trend has disproportionately affected Muslim and immigrant-owned businesses, leading to increased scrutiny and account closures.

Charities report that banks are hesitant to work with them, fearing negative publicity amid ongoing conflicts, which results in abrupt account terminations without clear justification. Accusations of supporting armed groups often arise, causing banks to withdraw support without thorough investigation, contributing to a climate of mistrust.

Research indicates that Muslims in the U.S. encounter banking challenges at twice the rate of the general population, with many facing difficulties in opening or maintaining accounts. This systemic issue not only hampers the ability of these charities to provide aid but also limits the broader participation of Muslim business owners in the economy.

In response to these issues, lawmakers have requested information from major banks regarding their practices, emphasizing the need for transparency and accountability in banking decisions to prevent discriminatory behavior against Muslim organizations.