A “debanking” row has erupted after the account of a ultra-conservative Christian charity that provides basic necessities to Ugandan orphaned children was closed by Bank of America.
The Memphis-based nonprofit organization Indigenous Advance Ministries has filed a complaint with the Tennessee Attorney General’s Office over concerns its accounts have been closed because the bank disagrees with its “religious views.”
The organization, which claims to have had a banking relationship with BofA since 2015, claims on its website that it is pro-life and anti-same-sex relationships.
BofA strenuously denies that it “exonerated” the agency over these views, telling that “religious beliefs are not a factor in the decision to close the account.”
But activists are calling for more transparency into how companies decide which accounts to close, adding that instances of “political and religious ‘debanking’ appear to be increasing.”
Indigenous Advance Ministries has filed a complaint with the Tennessee Attorney General’s Office over fears that their accounts have been closed because the bank disagrees with their “religious views.” Pictured: Indigenous founder and current board member Steve Happ in Uganda
The term “debanking” made global headlines last month after British politician Nigel Farage – the pioneer of the country’s Brexit movement and a close ally of former President Donald Trump – fell victim to the trend.
Historically, the term has referred to instances where banks have restricted financial services to companies that they believe are at risk of money laundering. However, companies are increasingly accused of closing accounts due to reputational risks that are inconsistent with the current societal climate.
Indigenous — previously known as World Shine USA — opened a new business account with BofA in January and applied for two credit cards shortly thereafter.
On April 24 of this year, she received a letter from the bank saying that all of her accounts would be closed within 30 days.
Associated accounts of partner company Indigenous Advance Customer Center and a church operating at the same address – Servants of Christ Community dba University House of Prayer – were also closed.
BofA’s correspondence states, “Upon reviewing your accounts, we have determined that you engage in a type of business that we have elected not to engage in at Bank of America.”
Indigenous community officials said they had “repeatedly” asked for an explanation about the closure.
A follow-up letter was sent to the organization on May 24, stating that its “risk profile no longer aligns with the bank’s risk tolerance.”
At the time, Indigenous said it had $270,000 in its deposit account.
The charity works with Ugandan government departments to support orphaned and vulnerable children and prisoners in the African country.
Under the Core Beliefs tab of her website, she endorses a number of evangelical Christian views, including the statement that “all human life is sacred…from conception to natural death.”
She also advocates that “marriage between a man and a woman is the only proper context for sexual relations.”
A letter to the Attorney General’s Office, signed by board members Steve Happ and Bob Phillips, said: “Being forced to transition so quickly has caused us major problems.” It also put our mission to Uganda on hold in June and we were on a temporary basis unable to pay our salaries in Uganda. And we were very confused.’
On April 24 of this year, Indigenous received a letter from the bank saying that all three accounts would be closed within 30 days (see image).
BofA strongly denies the allegations, telling that “religious beliefs play no part in the decision to close an account.”
They added, “Our mission and work of empowering Ugandan children and families through Indigenous Ugandan Ministries has remained the same since our inception and first account opening with Bank of America.”
“I am concerned that Bank of America has terminated our accounts and those of our partners because they are not aligned with our religious beliefs.”
A spokesman for BofA said the closure is related to part of Indigenous’ operations, which includes debt collection.
On its website, Indigenous stated that it is “dedicated to the task of expediting the collection of overdue invoices on behalf of our clients”.
BofA claimed that debt collection services are a clear violation of their policies. The bank added that it only found out about this part of the charity’s operation when the new account was opened in January.
The term “debanking” made global headlines last month after British politician Nigel Farage – the pioneer of the country’s Brexit movement – fell victim to the trend. Farage (right) is pictured with former President Donald Trump
However, when asked BofA to share the exact part of its policy that says it does not serve collection agencies, it was unable to do so.
The company added that the organization’s operations in Uganda also make it a high-risk account.
In a statement, a BofA spokesman said, “We are proud to provide banking services to nonprofit organizations belonging to various faith communities throughout the United States.”
“Religious beliefs are not a factor in any account closing decision.” “Our U.S. small business serving division does not provide banking services to organizations that provide collection services for various risk-related considerations, and does not serve small businesses operating outside the United States .”
Indigenous is now represented by legal representation Alliance Defending Freedom (ADF).
Bob Phillips (left) is the current Director of Indigenous Advance Ministries. Steve Happ, right, is the founder and board member of the charity. Together, the two have written to the Tennessee Attorney General’s office over fears they have been bankrupted.
ADF officials point out that BofA only issued a statement on the account closures after reached out to the bank for comment.
Jeremy Tedesco, ADF’s senior vice president of corporate engagement, said, “Americans shouldn’t have to worry about losing their bank accounts because of their political or religious beliefs.”
“Yet there seems to be an increase in banks terminating accounts based on a person’s language or religion.”
Tennessee Attorney General Jonathan Skrmetti’s office has acknowledged receipt of the complaint and is currently reviewing the details of the case.
The issue of debanking came to a head in the UK last month after Nigel Farage closed his account at private bank Coutts.