More Nonprofits Fall Prey to De-Risking Banks – Non Profit News For Nonprofit Organizations | Nonprofit Quarterly

https://nonprofitquarterly.org/2017/05/09/nonprofits-fall-prey-de-risking-banks/

banks have been known to close nonprofit accounts with little warning as part of a process known as de-risking. In the U.S. and UK, banks face steep fines if it is discovered that they allowed money linked to laundering or terrorism to flow through their bank. Rather than take this risk, banks such as London-based HSBC have simply shut down accounts, particularly charity accounts, in areas such as Syria and Somalia where wars have led to a potential increase in illegal activity. Unfortunately, it is in these areas that humanitarian efforts are most needed.

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