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Anti-terrorism measures hindering Muslim charities’ humanitarian efforts: Study
The study says banks and service providers have cut off charities, forcing some Muslim aid groups to halt or slow work in high-risk countries.
On Sunday, University of Toronto law and history professor Anver Emon released a study warning that Canada's strict anti-terror financing measures are forcing Muslim charities to withdraw humanitarian aid from Syria and Yemen due to fears of losing banking services.
Financial institutions frequently engage in "financial derisking," abruptly terminating accounts without explanation, which triggers "humanitarian derisking" as non-profits scale back aid to avoid potential criminal liability under anti-terrorism laws.
Two Canadian Muslim charities reported that banks abruptly cut services or froze funds, forcing one to stop operating in three countries and another to delay programs in Syria despite available exemptions under the Special Economic Measures Act.
Public Safety Canada and The Finance Department acknowledged the study's recommendations, stating the government is "committed to these dialogues" to ensure anti-terrorism measures remain effective while managing unintended effects on non-profits.
The study makes a dozen recommendations to federal agencies, following a National Security and Intelligence Review Agency report that identified "a lack of rigour" in how the Canada Revenue Agency selects charities for audits over terrorism concerns.