What Is De-Risking?
De-risking is when a bank or financial institution decides to stop doing business with a person, charity, or company it sees as “too risky.” It often happens without explanation, without warning to correct concerns, and without any proof of wrongdoing. Originally, this was meant to protect the financial system from money laundering and terrorist financing. But over time, de-risking has ended up hurting innocent people and organizations — especially Muslim-led and humanitarian charities.
History of De-Risking
After the 9/11 attacks, governments around the world introduced much stricter financial regulations. The goal was to cut off funding to terrorist groups. Banks were suddenly under pressure to monitor all customers and transactions very closely — or face steep fines and reputational damage. To avoid that risk, banks began shutting down accounts that might look problematic, even if nothing illegal had happened. It became easier — and safer — for banks to walk away than to ask more questions.
Who Is Being Affected?
Muslim-led and humanitarian charities were some of the first — and hardest — hit. Many of these charities do vital work in crisis zones like Syria, Gaza, and Somalia. These regions are often flagged by banks’ internal systems as high-risk. Even if the charity is registered, audited, and transparent, its account may still get shut down — with no real explanation.
Why Does This Happen?
Most banks today rely on complex screening software to monitor risk. These systems scan for certain terms or regions — like “Iran,” “Syria,” or even “Palestinian.” The idea is to spot potential red flags, but these tools often cast a very wide net. The problem is that banks are more afraid of missing something than they are of cutting off an innocent customer. So when in doubt, they shut the door.
A Global Problem
Canada isn’t alone. In the United Kingdom and the United States, Muslim nonprofits and individuals have faced the same treatment. Governments in both countries are now reviewing the problem. But in Canada, there are still no formal safeguards, no right to a bank account, and no independent appeal process with real power.
In the U.S.
Muslim-led and humanitarian charities. raising money for Gaza in 2023 suddenly had donations blocked or accounts closed.
In the U.K.
Over 40% of Muslim-led and humanitarian charities. surveyed reported having their accounts shut down — often with no reason given.
Why This Matters
De-risking affects real people and communities. Originally intended to protect against financial crime, it now disrupts aid projects, prevents charities from helping those in need, weakens public trust, and unfairly targets vulnerable groups. Without clear rules and accountability, the harm caused by de-risking continues to grow.
