An Islamic charity told by HSBC that its account would be closed in two months is considering fighting the British multinational bank's decision in court. Muhammad Ahmad, trustee and founding member of Bolton, United Kingdom-based Ummah Welfare Trust (UWT), told ACAMS moneylaundering.com the organization was meeting Friday with legal counsel to decide on a strategy for challenging the ban. But whatever course UWT chooses, one industry consultant indicated that it is hard for plaintiffs in this kind of case to ultimately prevail under current British law. "The SAR regime protects regulated firms from actions resulting in the disclosure of account...
In the financial compliance world, debt repayment doesn't usually attract much in the way of negative attention. But in the context of other red flags, sudden debt reimbursement can signal that a client is following a little-known stricture for Islamic soldiers who may soon die in battle.
British officials are asking lawmakers to strengthen an agency's oversight of charities in England and Wales in response to terrorism financiers, including bolstering governmental authority to dismiss trustees.
The British High Court injunction Tuesday against Barclays ending its relationship with Somali money services businesses is likely to keep the bank from dropping the accounts for five or six months, according to compliance experts.