EXCLUSIVE: ‘Debanking’ row breaks out after Bank of America shuts down account for ultra-conservative Christian charity that serves impoverished Ugandans
A debanking spat has erupted after the account of an ultra-conservative Christian charity that provides necessities for Ugandan orphans was closed by the Bank of America.
The Memphis-based nonprofit Indigenous Advance Ministries has filed a complaint with the Tennessee Attorney General’s Office over concerns that the accounts were being closed because the bank disagreed with its “religious views.”
The organization — which claims to have had a banking relationship with BofA since 2015 — claims pro-life and anti-gay relationship values on its website.
BofA strongly denies that it has “debanked” the agency because of these views, telling DailyMail.com that “religious beliefs are not a factor in an account closure decision.”
But campaigners are calling for more transparency about how companies decide which accounts to close, adding that instances of “political and religious ‘debanking’ appear to be on the rise.”
Indigenous Advance Ministries has filed a complaint with the Tennessee Attorney General’s Office over concerns that their accounts have been closed because the bank disagrees with its “religious views.” Pictured: Indigenous founder and current board member Steve Happ in Uganda
The term “debanking” made headlines around the world last month after British politician Nigel Farage — who pioneered the country’s Brexit movement and was a close ally of former President Donald Trump — fell victim to the trend.
Historically, the term referred to cases where banks restricted financial services to companies they judged to be at risk of money laundering. But companies are increasingly being accused of closing accounts because of reputational fears.
Indigenous — formerly called World Shine USA — opened a new business checking account with BofA in January before applying for two credit cards shortly thereafter.
On April 24 of this year, the bank received a letter informing it that all its accounts would be closed within 30 days.
Associated accounts of partner entity 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 stated, “In reviewing your accounts, we have determined that you operate in a business type that we have chosen not to operate at Bank of America.”
Indigenous representatives said they “repeatedly” asked for an explanation of the closure.
On May 24, the organization received a follow-up letter 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 ministries to provide support to orphaned and vulnerable children and prisoners in the African country.
On April 24 this year, Indigenous received a letter from the bank informing her that her three accounts would all be closed within 30 days, pictured
BofA firmly denies the allegations, telling DailyMail.com that ‘religious beliefs are not a factor in account closure’
Under the “Core Beliefs” tab on its website, it subscribes to a number of evangelical Christian beliefs, including that “all human life is sacred…from conception to natural death.”
It also advocates that “marriage between one man and one 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, read: “Being forced to transfer so quickly has caused a lot of problems for us. It also disrupted our mission to Uganda in June and we were temporarily unable to pay the salaries in Uganda. And we were very confused.’
They added, “Our mission and work, supporting Ugandan children and families through indigenous Ugandan ministries, has remained the same since we were founded and first opened our accounts with Bank of America.
“I am concerned that Bank of America has closed our and our partners’ accounts because it is inconsistent with our religious beliefs.”
A spokesperson for BofA said the closure was related to some of Indigenous’s activities, including debt collection.
On its website, Indigenous said it is “dedicated to pursuing the collection of overdue invoices on behalf of our clients.”
The term “debanking” made headlines around the world last month after British politician Nigel Farage — who pioneered the country’s Brexit movement — fell victim to the trend. Farage, right, is pictured with former President Donald Trump
BofA claimed debt collection services are a clear violation of its policies. The Bank added that it was only made aware of this part of the charitable organization when the new account was opened in January.
However, when DailyMail.com asked BofA to share the exact part of its policy that states it does not serve collection agencies, the company was unable to do so.
The company added that the organization’s business activities in Uganda also made it a high-risk account.
In a statement, a BofA spokesperson said: “We are proud to provide banking services to non-profit organizations affiliated with diverse faith communities across the United States.
‘Religious beliefs play no part in the decision to close an account. Our US division that serves small businesses does not provide banking services to organizations that provide collection services due to a variety of risk-related considerations and does not provide services to small businesses operating outside the United States.”
Indigenous is now represented by the legal advocacy organization Alliance Defending Freedom (ADF).
Bob Phillips, left, is the current Board of Trustees of Indigenous Advance Ministries. Steve Happ, right, is the charity’s founder and board member. Together, the two wrote a letter to the Tennessee Attorney General’s office, fearing their bank was being written off.
ADF representatives point out that BofA only commented on the account closures after DailyMail.com contacted the bank for comment.
Jeremy Tedesco, ADF senior vice president of corporate engagement, said, “Americans should not fear losing their bank accounts because of their political or religious beliefs.
“Yet the number of cases where banks cancel accounts because of people’s opinions or religion seem to be increasing.”
Tennessee Attorney General Jonathan Skrmetti’s office has confirmed it has received the complaint and is investigating the details of the case.
The issue of debanking came to a head in Britain last month after Nigel Farage had his account closed at private bank Coutts.