Lawmakers urge financial regulators to take action on banking discrimination

A group of Democrats in the House and Senate is calling on the heads of the Treasury Department, the Federal Reserve and other financial regulators to ensure fair banking access for Muslim Americans and immigrants.

Sen. Elizabeth Warren (D-Mass.) and Rep. Ilhan Omar (D-Minn.) wrote Wednesday to Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and other regulatory leaders. In the letter, he argued for anti-money laundering measures. Additionally, financial crime prevention policies implemented by government agencies may have a disproportionate impact on Muslim Americans.

These anti-money laundering measures are often known as ‘de-risking’, which refers to financial institutions terminating or restricting business relationships with large groups of customers.

“The threat of risk aversion is particularly salient for customers in the Muslim American community. Financial institutions are targeting Muslims, Arabs, Middle Easterners, “The law may incorrectly label people and South Asian Americans as ‘high risk,'” the lawmakers said in a May 15 letter.

in research last year According to the Institute for Social Policy Understanding, more than a quarter of Muslim Americans report having difficulty doing banking, the highest of any population group. Masu.

“Risk aversion can also undermine the stability and sustainability of countries that rely on remittances for economic development.” I pointed out an article about “doing harm” and wrote it.

Other signatories to the letter include Sen. Ed Markey (D-Mass.), Sen. Bernie Sanders (D-Vt.), Rep. Rashida Tlaib (D-Mich.), and Katie Porter. Includes Representatives Barbara Lee (D-Calif.), Alexandria Ocasio-Cortez (New York), Pramila Jayapal (D-Washington), and Joyce Marie Jayapal (D-Calif.). Beatty (D-Ohio) and Jonathan Jackson (D-Illinois).

Lawmakers pointed to a New York Times report in December that reported hundreds of customers reported that major financial institutions closed their accounts without warning to prevent suspicious activity.

While praising the efforts of the Ministry of Finance, risk avoidance strategy, The report, published last April, outlined ways to prevent risk aversion, but lawmakers argued more could be done.

They issued a joint statement in which federal agencies affirmed how financial inclusion is a “public priority” in anti-money laundering policy, and established a formal national advisory group on financial inclusion that includes representatives from each agency. proposed to establish it.

Lawmakers also recommended issuing more specific guidance to banks on what situations merit account closure. They called on the Treasury Department to require financial institutions to have a process for customers to submit evidence that a transaction is legitimate if they are concerned it could cause problems.

It also called on the Consumer Financial Protection Bureau to enforce regulations to ensure customers are given adequate notice and resources when their accounts are unexpectedly closed.

in announcement The Treasury Department said last year that risk aversion “undermines several important policy objectives of the U.S. government.”

“This strategy is a Biden-Harris strategy to create a more secure, transparent, and accessible financial system while maintaining a strong framework that protects the U.S. financial system from illegal actors and strengthens national security. reflects the administration’s priorities,” the Treasury Department said. The ministry said at the time:

Other recipients of the letter include Federal Deposit Insurance Corporation Chairman Martin Gruenberg, Crime Enforcement Network Director Andrea Gacki, National Credit Union Management Chair Todd Harper, Consumer Financial Protection Director Rohit Chopra, and Michael They included Su, acting director of the Audit Office. currency.

The Hill has reached out to each agency for comment.

More than 35,000 Palestinians have been killed in the Gaza Strip, according to local health officials, adding to concerns about anti-Muslim incidents in the United States as the war between Israel and Hamas continues.

More than 8,000 anti-Muslim complaints were recorded across the United States last year, the highest number in the 30 years the Council on American-Islamic Relations (CAIR) has been tracking complaints.

CAIR received the highest number of complaints in the last three months of last year, just after the extremist group Hamas launched a surprise invasion of Israel, killing about 1,200 people.