Muslim charities still being debanked despite Farage furore

Published

5 months ago

January 29, 2025

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Muslim charities say they are still having their bank accounts closed without warning or explanation and face difficulties opening an account despite the political backlash after Nigel Farage’s high-profile debanking.

It means charities face obstacles in carrying out their work, with some even being blocked from providing humanitarian aid and life-saving operations, according to a report from the Muslim Charities Forum (MCF).

It found 68% of Muslim charities reported difficulties opening bank accounts, 42% experienced a complete withdrawal of banking services and 42% also had significant challenges with transferring funds.

This delayed payments which damaged humanitarian work, the report said.

Money blog: Your boss is probably spying on you at home

Real-life harms were outlined by charities anonymously interviewed for the research.

One charity running a hospital in a conflict zone was not able to pay doctors and nurses for two months. Another supporting Syrian refugee children with cancer in Turkey had a payment delayed for a year, “severely” impacting the timely delivery of care to the children. A third received an eviction notice from a shelter because a payment had not arrived.

But even when debanking did not directly halt a project, it damaged 44% of respondent charities’ relationships with partners, they said. Delays in sending funds or having their account closed led to a breakdown in trust, the MCF added.

While anonymous, the report included testimony from charities.

Real-world harms

One told the report author of danger to staff when payments didn’t go through.

“Our charity was operating within an area in the Middle East, payments were getting held up by banks,” it said. “Because of these delays, local vendors would come to our field offices demanding payment at gunpoint, putting the lives of our workers at risk.”

While Muslim charities make up a small number of the UK charities sector, Muslims donate more than any other faith group, according to surveys.

Having no bank account means charities are in breach of the law, the MCF said.

There is no legal recourse, however, for charities who have been debanked. In the UK there is no legal right to a bank account.

Charities have to defend themselves even if there’s no wrongdoing, often without knowing why an account is closed or a transaction hasn’t gone through, according to the report.

Why are Muslim charities being hit?

Five issues converged to make debanking a particular problem for Muslim charities, according to the MCF: alleged Islamophobia, “highly common” names of charity workers being on a terrorist list, risk-averse banking, operating in high-risk areas like Syria, and the challenges faced by charities more broadly – difficulty complying with or understanding banks’ due diligence requests.

“Evidence suggests that structural Islamophobia plays a role, with Muslim-led charities often unfairly targeted by banks for perceived risks without concrete evidence of wrongdoing,” the report, lead-authored and researched by Abdulsami Arjumand, said.

Among the recommendations laid out is for bank staff to undergo anti-racism training, to “improve decision-making” and “avoid stereotyping or perpetuating racial and Islamophobic biases”.

Banks are risk-averse in their operations and have been terminating and restricting relationships with clients perceived as posing a higher risk of money laundering or terrorist financing.

This has disproportionately affected charities, Mr Arjumand’s report said, particularly those working in or with Muslim communities.

Responding to the study, banking lobby group UK Finance said any decision to restrict access to or close an account, is only taken after careful consideration and based solely on the need to comply with regulatory obligations.

“We want the process of opening and managing a bank account to be as clear and straightforward as possible and welcome engagement from charity organisations,” said the body’s managing director of commercial finance David Raw.

“Having read this report, we have contacted the Muslim Charities Forum to discuss the issues they are facing, as this is an important part of enhancing services,” Mr Raw said.

“We have ongoing and regular engagement with the wider charity sector, humanitarian organisations, and regulators on access to banking matters. With their support, we recently launched a new guide for voluntary organisations to help with opening and managing bank accounts,” he added.

How can this still be happening after the Farage furore?

Unlike countries such as Belgium, France and Italy, there is no legal right to a bank account in the UK. Banks do not have to provide services to everyone who wants them.

The Muslim charities’ research echoes a point made by finance regulator the Financial Conduct Authority (FCA) in their investigation of debanking.

“An important question for policymakers is whether all individuals, businesses and organisations should have the right to an account, as is the case in some other countries,” it said in its September 2023 report on bank account access and closures.

The comments and report came after the highly publicised debanking of Reform leader Nigel Farage. His account with exclusive bank Coutts was closed after the lender deemed him a reputational risk and said he had alleged links to Russia.

“The time is also right for a debate on how we balance access to bank accounts with the threat of financial crime, as well as firms’ reasonable risk and commercial appetites,” the FCA said in their 2023 publication.

It pointed out that anti-discrimination measures in the payment accounts regulations don’t apply to charities and political parties.

After the debanking of Mr Farage the political reaction from the previous Conservative government was strong. It committed to bringing in “tougher rules to stamp out debanking”. No legislative changes were made.

The Treasury, however, told Sky News it was committed to new laws to prevent debanking.

“Banking services fulfil a vital role in the lives of millions of people and businesses across the UK, and the government is committed to bringing forward legislation to enhance customer protections in cases where their bank account is terminated by their provider,” a Treasury spokesperson said.

“Further details will be set out in due course.”

With the changes it’s understood customers will have to receive detailed and specific explanations when their account is closed and generally have more notice of closures.

But government stopped short of acceding to the MCF’s recommendation of establishing a legal right to a basic bank account for charities.

Methodology

Nineteen charities responded to the MCF’s call for survey participants, a response rate described as “low”, which demonstrates charities’ concerns about coming forward to talk about debanking.

Despite promises of strict anonymity, most charities feared the reputational damage of being associated with debanking, which the report said, can result in further banking difficulties.

As well as being carried out by the MCF, the research was supported by the University of Aberdeen.

Responding to the MCF report, the FCA said, “We know that some groups can face challenges accessing bank accounts. We recently set out clear expectations on account access and have been actively engaging with the sector to ensure that these are being met.”

“Smaller charities will benefit from the protections of the consumer duty. We continue to monitor data on account access.”

UK

Care whistleblower ‘who saw elderly resident being punched’ could face removal from Britain

Published

14 hours ago

July 12, 2025

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Care whistleblower 'who saw elderly resident being punched' could face removal from Britain

A care worker who reported the alleged abuse of an elderly care home resident, which triggered a criminal investigation, is facing destitution and potential removal from Britain after speaking up.

“Meera”, whose name we have changed to protect her identity, said she witnessed an elderly male resident being punched several times in the back by a carer at the home where she worked.

Sky News is unable to name the care home for legal reasons because of the ongoing police investigation.

“I was [a] whistleblower there,” said Meera, who came to the UK from India last year to work at the home.

“Instead of addressing things, they fired me… I told them everything and they made me feel like I am criminal. I am not criminal, I am saving lives,” she added.

Like thousands of foreign care workers, Meera’s employer sponsored her visa. Unless she can find another sponsor, she now faces the prospect of removal from the country.

“I am in trouble right now and no one is trying to help me,” she said.

Meera said she reported the alleged abuse to her bosses, but was called to a meeting with a manager and told to “change your statement, otherwise we will dismiss you”.

She refused. The following month, she was sacked.

The care home claimed she failed to perform to the required standard in the job.

She went to the police to report the alleged abuse and since then, a number of people from the care home have been arrested. They remain under investigation.

‘Migrants recruited because many are too afraid to speak out’

The home has capacity for over 60 residents. It is unclear if the care home residents or their relatives know about the police investigation or claim of physical abuse.

Since the arrests, the regulator, the Care Quality Commission (CQC), carried out an investigation at the home triggered by the concerns – but the home retained its ‘good’ rating.

Meera has had no reassurance from the authorities that she will be allowed to remain in Britain.

In order to stay, she’ll need to find another care home to sponsor her which she believes will be impossible without references from her previous employer.

She warned families: “I just want to know people in care homes like these… your person, your father, your parents, is not safe.”

She claimed some care homes have preferred to recruit migrants because many are too afraid to speak out.

“You hire local staff, they know the legal rights,” she said. “They can complain, they can work anywhere… they can raise [their] voice,” she said.

Sky News has reported widespread exploitation of care visas and migrant care workers.

Currently migrants make up around a third of the adult social care workforce, with the majority here on visas that are sponsored by their employers.

As part of measures announced in April in the government’s immigration white paper, the care visa route will be closed, meaning care homes will no longer be able to recruit abroad.

‘Whole system is based on power imbalance’

But the chief executive of the Work Rights Centre, a charity that helps migrants with employment issues, is warning that little will change for the tens of thousands of foreign care workers already here.

“The whole system is based on power imbalance and the government announcement doesn’t change that,” Dr Dora-Olivia Vicol told Sky News.

She linked the conditions for workers to poor care for residents.

“I think the power that employers have over migrant workers’ visas really makes a terrible contribution to the quality of care,” she said.

Imran agrees. He came to the UK from Bangladesh, sponsored by a care company unrelated to the one Meera worked for. He says he frequently had to work 14-hour shifts with no break because there weren’t enough staff. He too believes vulnerable people are being put at risk by the working conditions of their carers.

Migrant workers ‘threatened’ over visas

“For four clients, there is [a] minimum requirement for two or three staff. I was doing [it] alone,” he said, in broken English.

“When I try to speak, they just directly threaten me about my visa,” he said.

“I knew two or three of my colleagues, they are facing the same issue like me. But they’re still afraid to speak up because of the visa.”

A government spokesperson called what happened to Imran and Meera “shocking”.

“No one should go to work in fear of their employer, and all employees have a right to speak up if they witness poor practice and care.”

James Bullion, from the CQC, told Sky News it acts on intelligence passed to it to ensure people stay safe in care settings.

Additional research by Leah Adin

UK

Donald Trump may be denied privilege of addressing parliament on UK state visit

Published

14 hours ago

July 12, 2025

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Donald Trump may be denied privilege of addressing parliament on UK state visit

Donald Trump may be denied the honour of addressing parliament on his state visit to the UK later this year, with no formal request yet submitted for him to be given that privilege.

It comes after President Macron’s successful state visit this week, in which he was invited to speak in front of both Houses of Parliament.

Sky News has been told the Speaker of the House of Commons, Sir Lindsay Hoyle, hasn’t so far received a request to invite the US president to speak in parliament when he is expected to visit in September.

It was confirmed to MPs who have raised concerns about the US president being allowed to address both houses.

Kate Osborne, Labour MP for Jarrow and Gateshead East, wrote to the speaker in April asking him to stop Mr Trump from addressing parliament, and tabled an early-day motion outlining her concerns.

“I was happy to see Macron here but feel very differently about Trump,” she said.

“Trump has made some very uncomfortable and worrying comments around the UK government, democracy, the Middle East, particularly around equalities and, of course, Ukraine.

“So, I think there are many reasons why, when we’re looking at a state visit, we should be looking at why they’re being afforded that privilege. Because, of course, it is a privilege for somebody to come and address both of the houses.”

But the timing of the visit may mean that any diplomatic sensitivities, or perceptions of a snub, could be avoided.

Lord Ricketts, a former UK ambassador to France, pointed out that parliament isn’t sitting for much of September, and that could help resolve the issue.

In 2017, he wrote a public letter questioning the decision to give Donald Trump his first state visit, saying it put Queen Elizabeth II in a “very difficult position”.

Parliament rises from 16 September until 13 October due to party conferences.

The dates for the state visit haven’t yet been confirmed by Buckingham Palace or the government.

However, they have not denied that it will take place in September, after Mr Trump appeared to confirm they were planning to hold the state visit that month. The palace confirmed this week that the formal planning for his arrival had begun.

With the King likely to still be in Scotland in early September for events such as the Braemar Gathering, and the anniversary of his accession and the death of Queen Elizabeth on the 8th September, it may be expected that the visit would take place sometime from mid to the end of September, also taking into consideration the dates of the Labour Party conference starting on the 28th September and possibly the Lib Dem’s conference from the 20th-23rd.

When asked about parliamentary recess potentially solving the issue, Ms Osborne said: “It may be a way of dealing with it in a very diplomatic way… I don’t know how much control we have over Trump’s diary.

“But if we can manoeuvre it in a way that means that the House isn’t sitting, then that seems like a good solution, maybe not perfect, because I’d actually like him to know that he’s not welcome.”

A message from the speaker’s office, seen by Sky News, says: “Formal addresses to both Houses of Parliament are not automatically included in the itinerary of such a state visit.

“Whether a foreign head of state addresses parliament, during a state visit or otherwise, is part of the planning decisions.”

It’s understood that if the government agrees to a joint address to parliament, the Lord Chamberlain’s office writes to the two speakers, on behalf of the King, to ask them to host this.

It will be Mr Trump’s second state visit.

During his first, in 2019, he didn’t address parliament, despite the fact that his predecessor, Barack Obama, was asked to do so.

It was unclear if this was due to the fact John Bercow, the speaker at the time, made it clear he wasn’t welcome to do so.

However, it didn’t appear to dampen Mr Trump’s excitement about his time with the Royal Family.

Speaking earlier this year, he described his state visit as “a fest” adding “it’s an honour… I’m a friend of Charles, I have great respect for King Charles and the family, William; we have really just a great respect for the family. And I think they’re setting a date for September.”

It is expected that, like Mr Macron, the pageantry for his trip this time will revolve around Windsor, with refurbishment taking place at Buckingham Palace.

UK

Liverpool retires number 20 shirt at all levels in honour of Diogo Jota

Published

14 hours ago

July 12, 2025

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Liverpool retires number 20 shirt at all levels in honour of Diogo Jota

Liverpool have retired the number 20 shirt in honour of Diogo Jota – the first time it has made such a gesture.

The club said it was a “unique tribute to a uniquely wonderful person” and the decision was made in consultation with his wife and family.

The number 20 will be retired at all levels, including the men’s and women’s first teams and academy squads.

A statement said: “It was the number he wore with pride and distinction, leading us to countless victories in the process – and Diogo Jota will forever be Liverpool Football Club’s number 20.”

The club called it a “recognition of not only the immeasurable contribution our lad from Portugal made to the Reds’ on-pitch successes over the last five years, but also the profound personal impact he had on his teammates, colleagues and supporters and the everlasting connections he built with them”.