Anti-terrorism measures hindering Muslim charities’ humanitarian efforts: study

OTTAWA - Strict anti-terrorism financing measures are causing Muslim charities in Canada to stop providing humanitarian aid to countries in need, such as Syria and Yemen, due to fears of losing banking access if they operate there, warns a new study. The study, conducted by University of Toronto law and history professor Anver Emon, recommends a dozen changes to help charities and non-profits aid abroad without fear of repercussions.

The treatment of Muslim charities has been under investigation for years, with critics claiming they've been unfairly targeted in the fight against terrorist financing. A report released in October by the National Security and Intelligence Review Agency found "a lack of rigour" in the Canada Revenue Agency's selection of charities for audits over terrorism concerns, stating the process introduces risks of bias and discrimination.

While anti-terrorism measures are meant to protect the financial system and uphold international obligations, they also lead to unintended consequences. Muslim charities are particularly vulnerable, as they provide aid to regions deemed high-risk for terrorist financing by Canada. This leads to "financial derisking" by banks and "humanitarian derisking" by non-profits, causing them to scale back or end humanitarian commitments due to the risk of violating anti-terrorism measures or sanctions.

For instance, when the Taliban took control of Afghanistan in 2021, Canadian charities operating there suddenly faced criminal liability, as humanitarian funds could inadvertently benefit the Taliban, a listed terrorist entity. Canada amended the Criminal Code in 2023 to allow delivery of basic humanitarian assistance when efforts are made to minimize support for terrorist groups.

However, the scope of "humanitarian" aid under this exception remains unclear, causing organizations to conduct their own risk assessments, often resulting in "self-imposed humanitarian derisking" from areas in urgent need of aid. Two Canadian Muslim charities spoke to The Canadian Press but declined to be named, citing concerns that speaking publicly might deter potential donors.