Chicago – November 29, 2024
Muslim charities and organizations working to support Palestinians in Gaza are facing major challenges as banks increasingly refuse to work with them.
Many of these groups aim to provide essential aid to people in Gaza, who are enduring severe hardships due to bombings and a lack of basic necessities. However, some banks have closed accounts belonging to Muslim-led charities without clear reasons, a practice now being called “Muslim while banking.”
Experts believe these account closures are tied to fears of bad publicity. Pro-Israel groups have reportedly published articles accusing Muslim organizations of aiding armed groups, often without evidence. This leads banks to avoid working with them rather than investigating the claims. LaunchGood, a crowdfunding platform, is one of the organizations fighting to help people in Gaza while also addressing this issue.
U.S. Congresswoman Ilhan Omar and other lawmakers have spoken out against this discrimination. In February, they asked major banks for explanations about why Muslim Americans face such account closures.
Omar stated that “de-risking” by banks unfairly targets Muslims and immigrant-owned businesses, cutting off their access to critical services. She called the practice unacceptable, highlighting the harm it causes to both individuals and humanitarian efforts.
