Muslim charities face discrimination as Palestinians are desperate for aid

The practice of ‘de-risking’ by financial institutions has had a disproportionate impact on Muslim and immigrant-owned businesses, and they are being cut off from access to essential banking services.

As the people of Gaza face famine and the continued bombing of their homes by Israel, numerous Muslim charities and organisations are desperately trying to help keep Palestinians alive and help those in need.

However, many of these organisations have found over the past year that the banks they rely upon to help get this aid to the people of Gaza do not want to work with charities that are run by Muslims – especially if they are focused on Gaza. This has become referred to as “Muslim while banking”.

“We used to joke when we started our company that we had 99 problems and payments wasn’t one of them, 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 organisations.”

LaunchGood is one of many organisations that are trying to help people from Gaza who have found their payment accounts closed for no discernible reason over the past year. Killawi says she thinks these banks are afraid of receiving bad publicity for working with Muslim organisations while the highly contentious debate over the future of Israel and Palestine goes on.

“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,” Killawi says. “The other issue you have is that there’s been a politicisation of humanitarian aid.”