Aid groups face financial obstacles due to stricter banking regulations

Global Business

Aid groups face financial obstacles due to stricter banking regulations

Civilians and refugees in places like South Sudan and Syria have been relying on food drops and medical services from humanitarian aid groups like the Red Crescent.

However, with stricter banking regulations being implemented, lots of charities are having trouble transferring money.

CCTV America’s Jessica Stone reports.

Aid groups face financial obstacles due to stricter banking regulations

Aid groups face financial obstacles due to stricter banking regulations

Stricter banking regulations are becoming an obstacle between aid groups and homeless, helpless and hungry people who so vitally need their services.

Aid groups estimate that at least 300 charities in the U.K. alone are struggling to transfer funds.

Andrew O’Brien from U.K.’s Charity Finance Group points out that the difficulties in transferring money have meant that humanitarian projects may have to be delayed.

“Some charities and NGO’s had to think about pulling back altogether from some quite high-risk zones like Syria or South Sudan, Somalia,” O’Brien said.

He also said that as many as 300 charities have had their bank accounts cancelled or money transfers delayed because of stricter banking regulations broadly known as “de-risking.”

To O’Brien, these problems are man-made.

“They can be solved by man-made institutions like governments and regulators if they have the will to do so,” O’Brien said. “But it requires them to be realistic.”

Bill Stutts discusses charity sanctions

For more on charity sanctions, CCTV’s Jessica Stone spoke to Bill Stutts, senior counsel at Baker Botts, to see what he has to say about this issue in the banking community.