TheQuartering [8/23/2023]
A ‘debanking’ row has broken out after an ultra-conservative Christian charity which provides necessities to Ugandan orphans had its account shut down by Bank of America.
Memphis-based non-profit Indigenous Advance Ministries has filed a complaint to the Tennessee Attorney-General’s office over concerns its accounts were closed because the bank disagrees with its ‘religious views.’
The organization – which claims to have had a banking relationship with BofA since 2015 – purports pro-life and anti-same sex relationship values on its website.
BofA firmly denies it ‘debanked’ the body over these views, telling DailyMail.com that ‘religious beliefs are not a factor in any account-closing decision.’
But campaigners are calling for greater transparency over how firms decide which accounts to shut down, adding cases of ‘political and religious ‘debanking’ appear to be on the rise.’
The term ‘debanking’ hit headlines across the globe last month after UK politician Nigel Farage – who pioneered the country’s Brexit movement and was a close ally of former president Donald Trump – fell victim to the trend.
Historically the term referred to cases where banks limit financial services to businesses it assessed as having money laundering risks. But firms are increasingly being accused of closing accounts over reputational fears.
Indigenous – which was previously named World Shine USA – opened a new business checking account with BofA in January before shortly applying for two credit cards.
On April 24 this year, it was sent a letter by the bank advising that its accounts were being shut down within 30 days.
Associated accounts belonging to partner entity Indigenous Advance Customer Center and a church operating at the same address – Servants of Christ Community dba University House of Prayer – were also closed.
The correspondence from BofA stated: ‘Upon review of your accounts, we have determined you’re operating in a business type we have chosen not to service at Bank of America.’
Representatives for Indigenous said they ‘repeatedly’ asked for an explanation about the closure.
On May 24, the organization was sent a follow-up letter that stated its ‘risk profile no longer aligns with the bank’s risk tolerance.’
At the time, Indigenous said it had $270,000 in its deposit account.