What happens when a non profit organization suddenly loses access to its bank account, payment processor or donation platform, sometimes without being told why?

A new report from the International Civil Liberties Monitoring Group (ICLMG), The Damage of De-risking: How Canada’s Policies to Counter Terrorism Financing Drive Financial Exclusion, looks at how this is happening to non-profit and charitable organizations in Canada.

The report documents cases of organizations facing account closures, frozen funds, disrupted donations and loss of access to financial services. It finds that Muslim-led charities and organizations working in humanitarian and international assistance are particularly affected. The report links these experiences to Canada’s anti-money laundering and counter-terrorism financing framework, and how financial institutions respond to perceived risks.

The report calls for a shift from risk avoidance to proportionate risk management and puts forward 12 recommendations for the Canadian government, supervisory bodies, financial institutions and payment processors. These include greater transparency around de-risking decisions, stronger NPO involvement in policymaking, and safeguards for organizations facing account closures.

Read the Executive Summary or explore the Full Report.