Derisking Silently Closes Accounts. No Warning. No Explanation.

Imagine waking up to find your account closed, and no one will tell you why. This is the reality for thousands affected by derisking. It’s legal, invisible, and deeply harmful.

What Is Derisking?

Derisking is the action taken by financial institutions—often under pressure from regulatory authorities—to limit, freeze, or terminate financial services. This can happen without warning or explanation, and may target individuals solely based on their associations.

Accounts Shut Down

Derisking often results in personal or business bank accounts being closed instantly and without explanation.

No Warning

Institutions can freeze or terminate services without notifying the account holder in advance.

No Explanation

People are left in the dark — many never receive a reason, even after contacting their bank or regulator.

About COODA

The Canadian Observatory on Derisking Abuse

COODA exists to inform and educate the public on the hidden harms of discriminatory de-risking and financial exclusion.

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Join the Initiative

Every voice matters. Whether you’ve been impacted by derisking or simply believe in the right to equitable banking access, your support helps push for lasting change.

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Who Has the Power?

Derisking is not random — it’s the result of decisions made by powerful institutions. Government agencies, financial regulators, and major banks often work together behind the scenes to identify individuals or organizations they deem “high risk.” These decisions can lead to frozen accounts, closed services, and total exclusion from the financial system — all without warning or explanation.

Complicit Parties

Systemic Discrimination

Systemic discrimination is deeply embedded in the practice of derisking. Financial institutions often rely on biased algorithms, profiling, or flawed risk assessments that disproportionately target racialized and marginalized communities. Entire families, charities, and businesses have faced exclusion not because of wrongdoing, but because of who they are or who they’re connected to. This section highlights the facts, figures, and real cases that expose this hidden injustice.

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Biased Systems Behind Financial Exclusion

Minority-led organizations — especially Muslim and immigrant groups — are disproportionately targeted by derisking actions, often without cause.

 

Numerous legitimate charities have had accounts closed without notice, despite years of compliant operation and clean financial records.

 

People have faced frozen accounts simply for being related to or associated with someone labeled “high risk,” even without any personal wrongdoing.

Financial institutions can legally close accounts or deny services without offering a reason, leaving individuals powerless and uninformed.

Reports from civil rights organizations reveal a troubling pattern: Canadian Muslims are far more likely to experience unexplained account closures.

How We Change This

Derisking isn’t just a financial decision — it’s a systemic issue rooted in policy, bias, and lack of accountability. To address the harm caused by unjust account closures and financial exclusion, Canada must reassess and reform its derisking practices at every level. Policy change, transparency, and stronger human rights protections are essential to preventing discrimination under the guise of “risk management.” We must demand clearer criteria, fairer processes, and channels for appeal.

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