Elham Asaad Buaras
Muslim advocacy groups have called for a review of banking practices involving the decade-long “arbitrary closure” of accounts of British Muslims and Muslim-led NGOs.
The appeal by the Muslim Council of Britain, Lancashire Council of Mosques, and the Muslim Charities Forum for the protection of universal banking rights, irrespective of religious, cultural, or political background, was made in the wake of effective and swift government intervention in aid of a former right-wing politician following his de-banking.
The closure of Nigel Farage’s Coutts accounts last month sparked outrage among senior Tory MPs, who successfully pressured the NatWest-owned private bank to reinstate it. Britain’s major banks were summoned to a meeting with the Economic Secretary to the Treasury after he raised “significant concerns” over the closure of Farage’s bank account.
Andrew Griffith sent a letter to the bosses of 19 banks, including Barclays, Lloyds, and NatWest, to warn that the government is prepared to “take the action necessary” to protect freedom of speech.
NatWest Group has since announced an independent review into the former UKIP leader’s account closure and other instances of de-banking by Coutts, as he seeks compensation.
In its letter to the Prime Minister, Chancellor, leaders of opposition parties and the Treasury, the Muslim Council of Britain (MCB) noted the Cabinet’s “decisive intervention” on behalf of Farage has been withheld for “British Muslims and Muslim-led organisations,” for whom “the arbitrary withdrawal of banking services by different UK banks has become par for the course over the past decade.”
“The practice has continued unhindered, with limited transparency into the relevant banking systems and decision-making processes, little to no recourse for those impacted, and no action taken by successive governments to address any of the aforementioned,” noted MCB in its letter.
It added that “significant cause for concern” remains “that many British Muslims and Muslim-led organisations have somehow been determined to be a potential risk” despite a lack of “validated evidence of any criminal activity”.
Zara Mohammed, MCB Secretary General, called for an impartial review that not only addresses the mechanisms behind bank account closures but also examines why Muslim customers are disproportionately affected by this issue.
“Our affiliates are ready to share their experiences and recommendations to ensure fair treatment for all.
The Muslim Charities Forum (MCF), said it has for years voiced concern over “the disproportionate effect of this unclear banking practice on Muslim-led third sector organisations.”
In a statement to The Muslim News, MCF said most of its members and affiliate charities have “faced problems with their banks, which have affected their access to vital funds and hindered development work, despite adhering to all measures asked of them and operating with total transparency and legality.” And are “suffering in silence” for fear of losing “whatever banking facilities they have left.”
MCF also urged the government “to help stop these financial discriminations and introduce full reform so that the banking system becomes fit for our time and age, inclusive, and transparent.”
MCF also called on the financial industry to be more transparent with its compliance framework and communications with Muslim charities to better understand their operating model and respond to their concerns affecting much-
needed aid work.
“Research in 2017 by various British government departments found and concluded that charities and INGOs are low risk, so why have they been treated otherwise?”
The Lancashire Council of Mosques (LCM) has taken a different approach, writing directly to HSBC Bank over a series of unexplained closures of bank accounts run by Muslim volunteers and community groups.
In a statement signed by its Chair, Abdul Alim Kheratkar, LCM said, “The closure of numerous bank accounts without a clear explanation has caused significant frustration among Muslim charities and organisations.
“This situation has resulted in delays in funds reaching those in need and has created issues within our Muslim communities.
“Given the frequency and lack of transparency surrounding these closures, we believe it is essential to engage in an open and constructive dialogue to address these concerns.”
The letter also urges HSBC Bank to “improve its communication channels with Muslim charities and organisations to ensure transparency and enable a more efficient resolution of any potential compliance issues.”
It also aims to “seek assurance from HSBC Bank that it will provide the necessary support and guidance to Muslim charities and organisations, particularly those affected by the closure of bank accounts.”
The statement adds: “By engaging in a constructive dialogue, we can address the concerns raised by Muslim charities and organisations regarding the closure of bank accounts.”
Prompted by information in World-Check, a confidential database owned by Thomson Reuters, about reported alleged links to terrorism, HSBC Bank closed Finsbury Park Mosque’s bank account in 2014. Thomson Reuters was sued by the Mosque, which was settled in 2017 after Reuters agreed to apologize, pay substantial damages, and remove the Mosque from the list.
“Financial operations became an uphill battle as we struggled to maintain our day-to-day operations. Paying staff salaries became a challenge, and the disruption of standing-order donations resulted in a significant loss of much-needed income,” Mohammed Kozbar, Chair of Finsbury Park Mosque, told The Muslim News, explaining the “severe and far-reaching consequences” of the account closure.
“Beyond the financial strain, the closure of our bank account dealt a blow to our reputation for no justifiable reason. It caused unwarranted damage to the image of the mosque, undermining the efforts we had tirelessly invested in rebuilding and repositioning ourselves as not just a place of worship but a community centre for all.
“Despite our hard work to change perceptions and foster positive engagement, the closure of our bank account reinstated negative stereotypes and misconceptions.”
Kozbar also addressed the double standard reaction to the bank account closure of Farage, “a figure known for his divisive views on British Muslims and other minorities,” which “sparked a national uproar, raising questions about political bias and the unequal treatment of individuals,” and the Finsbury Park Mosque bank account closure, which gained “little public concern or acknowledgement.”
He added, “It is time to address these double standards head-on, holding all parties accountable to ensure justice prevails. We can work towards creating a society that truly embraces its diversity and ensures that every individual, regardless of their faith or political beliefs, is treated with dignity, respect, and fairness.” Also de-banked by HSBC in 2014 was Anas Altikriti, CEO and founder of the Cordoba Foundation.
Speaking to The Muslim News, the prominent Muslim activist said that over the years he had been de-banked six times and met with “stonewall silence” each time.
Speaking of HSBC’s closure of his account, as well as those of his then-wife and two children, Altikriti noted that the letters informing them of the closure of their accounts were “abrupt, problematic, and quite unnerving” in tone.
And had essentially stated, “There was no appeal; the bank was within its rights to take this step without explaining.” And that he was “not to create any new accounts with HSBC or its affiliated banks in the future.”
Altikriti asserts that his decades of trouble-free banking and suspect-free existence make him “feel justified and comfortable” in claiming he was de-banked due to his political views.
However, the lack of an official explanation for his de-banking has caused detriment to his “credibility, reputation, as well as my ability to function.”
“When my ideological adversaries suggested that banks only closed the accounts of drug dealers’ money launderers, terrorists, or such, I couldn’t defend myself because I had no explanation.”
Although he said he did not begrudge Farage’s success in exposing his bank’s unethical de-banking and having his accounts reinstated, he did, however, declare the lawmakers’ and media’s mass intervention on behalf of Farage had exposed “flagrant racism,” as such advocacy has been denied to countless Muslims over the years.
“Prime minister after prime minister, I beseeched them to get involved. I spoke to MPs who told me the parliament had no reach or oversight over the behaviour of banks, which are our banks.
The fact that the media refuses to touch my story, the fact that no one asked questions apart from brave people like Peter Oborne, who went digging and wanted to find out exactly why this was and broadcast a fantastic show about risk assessment and profiling agencies, such as World Check and others, that play an incredibly insidious role in needlessly destroying the lives of countless people,” said Altikriti.
He added, “The fact that the majority of those who have been de-banked over the past several years have been by far and large Muslim individuals, as well as Muslim organisations is, in itself, a condemnation of our democracy and the claim that we uphold values of equality and freedoms and things that we claim that we go to war over around the world. All this paints a gruesome and pitiful picture.”
Prime Minister, Rishi Sunak, said his “primary concern” following the Farage row was the wider impact of de-banking on freedom of speech.
“This isn’t about any one individual; this is about values that are important to me and important to our country… Rather than the individuals, focus on the values that are at stake: freedom of expression and privacy. I believe in those values very strongly,” Sunak told GB News.
Asked if the government would address the disproportionate de-banking of Muslims, a spokesman for the Prime Minister told The Muslim News that would be for the “regulator first and foremost.
And if there was evidence of that, we would expect them to look into it and report back.”
In a statement to The Muslim News, the UK’s financial regulator, the Financial Conduct Authority (FCA), stressed that “banks cannot discriminate against the Muslim community or any religious beliefs.” And that its “Consumer Duty Rules require all financial firms to deliver good outcomes for their customers,” which includes “communicating with them well.”
The FCA said it is “currently looking into the issue of people losing their bank accounts and have asked for information from the largest account providers to assess the impact on a wide range of customers.
This will include looking at the reasons firms close and refuse accounts and the impacts of this on different groups. We will report our initial findings and potential next steps in mid-September.” The FCA has also urged consumers who believe they have been wrongly denied access to an account to first complain to their bank, then to the Financial Ombudsman if they are still dissatisfied.
HSBC Bank has been approached for comment.
Photo: Mohammed Kozbar (far left), chair of Finsbury Park Mosque pictured with HM King Charles III and Queen Consort Camilla, the then-Prince of Wales, visited the mosque on March 16, 2021, in recognition of its COVID vaccination campaign. The North London mosque, which had its HSBC account reinstated after erroneously being de-banked in 2014, is one of many Muslim bodies and individuals disproportionately de-banked, say Muslim leaders.
(Credit: Finsbury Park Mosque)
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