September 7, 2014

American banks closing Muslim accounts

LA Times - From Washington state to Florida, surprising letters from banks have turned up in the mailboxes of at least a dozen people.

The message in each case: Your bank account is being closed. What frustrates the recipients is not only that they are all of Middle Eastern descent — leading them to suspect discrimination — but that the banks refused to provide the reason for kicking them out.

Last summer, a Minneapolis dentist went so far as to write detailed explanations of all his transactions, hoping that TCF Bank would let him reopen the joint account with his wife and his personal account. The response: Sorry, we're not interested in your business. Related story:

"I don't see why there would be a red flag on anything I performed," said the dentist, a Kuwait native who requested anonymity for fear of retribution from his current bank. "Maybe they have something I'm not aware of, but they said they couldn't say anything."

A Florida attorney for the Council on American-Islamic Relations has asked the U.S. Department of Justice's Civil Rights Division to look into the closures and determine whether race is playing factor in the decisions. A Justice Department spokeswoman said the issue was a matter for banking regulators, including the Consumer Financial Protection Bureau.

Frustrated by the responses from regulators, the Michigan chapter of the Council on American-Islamic Relations is contemplating a lawsuit against banks, said Executive Director Dawud Walid.

TCF Bank did not respond to a request to comment. An official at another bank, declining to comment on the record, called the cases isolated, nondiscriminatory actions that were among thousands of closures that happen annually. While some closures may occur over suspicions of money laundering or terrorism financing, some victims wonder why no charges have been brought if that's the case.

The Times has verified about a dozen closures involving Muslims, immigrants from the Middle East, and groups such as Council on American-Islamic Relations chapters, but activists say scores more have been affected. Similar concerns emerged in London this summer.

No comments: