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

A new study warns that strict anti-terrorism financing measures are causing Muslim charities in Canada to withdraw humanitarian assistance from countries in need, such as Syria and Yemen. The study, by University of Toronto law professor Anver Emon, recommends a dozen changes to help charities provide assistance abroad without fear of repercussions.

The charity sector has come under scrutiny for being unfairly targeted in the fight against terrorist financing. Critics argue they have been singled out. A previous report found flaws in the Canada Revenue Agency's process for selecting charities for audits over terrorism concerns. The new study acknowledges these measures are necessary for financial system integrity, but notes unintended consequences.

Muslim charities are particularly vulnerable due to their humanitarian work in high-risk regions. The study highlights "financial derisking" by banks and "humanitarian derisking" by non-profits as they scale back or end operations due to anti-terrorism measures. The Taliban's takeover of Afghanistan in 2021 raised criminal liability risks for Canadian charities.

Canada amended the Criminal Code in 2023 to allow limited humanitarian aid, but the scope remains unclear. Two unnamed Canadian Muslim charities reported service disruptions and freezing of funds for Syria after recent policy changes. The study recommends clearer guidance from the Canada Revenue Agency and Public Safety Canada on the humanitarian exception and authorization regime.