Why Banks Like HSBC Won’t Send Money to War-Zone Charities
- Standard Chartered wouldn’t transfer funds for Christian Aid
- ‘The unintended consequence here is that aid is being denied’
Frances Guy was close to rolling out a program to feed hundreds of displaced people in war-torn Syria last year. Guy, the Middle East head of Christian Aid, had secured funds and found partners. But there was one obstacle she couldn’t overcome: The charity’s bank, Standard Chartered Plc, refused to transfer $50,000 to put the project in motion.
Christian Aid, which is sponsored by 41 churches in Britain and Ireland, isn’t the only organization to face such restrictions. Since U.S. authorities levied billions of dollars in fines against Standard Chartered, HSBC Holdings Plc and BNP Paribas SA for violating sanctions on pariah nations in recent years, banks have been unwilling to send money to some countries and have even shut accounts. Charity Finance Group, a London-based trade association with 1,350 members, says 200 to 300 organizations have had their accounts canceled or endured long delays and rejections of money transfers.