Bridging the Financial Gap: Muslim Crowdfunding
Part 1
Regulations designed to make our financial system safer often harm individuals, and entire populations, across the globe. Immediately following the events of September 11, 2001, the United States made anti-terrorist financing rules a top priority to ensure that terror groups could not use the U.S. financial system to fund operations. Albeit unintended, in practice, these regulations created a regulatory environment that ruthlessly excludes certain blocks of people and organizations — including and especially those from Muslim communities from financial services — all while creating a facade of robust compliance.
The implementation of these “preventative” rules has resulted in far more damage by denying people access to financial networks simply because they are perceived as “high-compliance risk”. Moreover, these rules actually jeopardize U.S. national security and global economic resilience by making it harder to find bad actors while simultaneously keeping good actors engaged in meaningful financial activities out of the U.S. financial system.
FinClusive was created as an attempt to examine these rules and find a way to work towards changing the system as a whole. New financial technology tools, like blockchain and advanced analytics, can improve risk assessment, enhance customer insight, and expand access to marginalized and those otherwise considered “high perceived risk” the formal financial system.
One of our initial partners is LaunchGood, a crowdfunding platform enabling Muslim communities across the world to raise money and provide meaningful support to humanitarian and other important social services. FinClusive has been working closely with LaunchGood to provide comprehensive due diligence of ‘higher-risk’ charitable and philanthropic works for their flourishing community, as well as process millions of dollars worth of transactions to organizations and people in need worldwide.
Here’s a quick look into how we are helping LaunchGood with their due diligence needs and providing secure fund movements:
$137M+ Transactions Processed
150+ Humanitarian/Charitable Activities and Organizations Run Through Enhanced Due Diligence Globally in Last Six Months
$15M Average Client Funds on Deposit
Problem
LaunchGood is a crowdfunding platform that caters to the global Muslim community. They are perceived as a ‘higher-compliance risk’ entity by many financial institutions (banks, payment facilitators, money services) due to the nature of their affiliations and the activities of some of their customers/campaigns. LaunchGood raises donor funds to support humanitarian and charitable causes globally, including in higher-risk jurisdictions.
Solution
Compliance as a Service helps LaunchGood with their extensive due diligence and campaign monitoring needs related primarily to international charitable and humanitarian works in ‘higher-risk’ environments.
Accounts & Payments allows LaunchGood to manage client/campaign fundraising efforts by providing secure accounts, ledgering, treasury and balance management, and efficient and secure movement of donor funds with full audit/oversight, funds tracking and anti-fraud controls.
Products
- Comprehensive Global Due Diligence and Monitoring
- Secure Funds Movements with Tracking and Audit
Learn about LaunchGood and other customers that FinClusive has serviced here: https://www.finclusive.com/use-cases#LaunchGood
