Muslim Charities Must Move £240M Out of Genocide Banks

UK-based Muslim charities collectively retain more than £240 million in accounts with high-street banks directly tied to financing Israel’s military occupation, arms industry, and ongoing genocide…

According to a damning investigation by Boycott Banks for Palestine, UK-based Muslim charities collectively retain more than £240 million in accounts with high-street banks directly tied to financing Israel’s military occupation, arms industry, and ongoing genocide.[1] [2]

These findings have ignited urgent calls within the Muslim community for charities to divest without delay. By lodging their donations in these genocide banks, charities are inadvertently empowering the very war machinery carrying out the slaughter in Gaza.

Muslim Charities and Their Banks: A Snapshot

According to the findings, the following charities still lodge millions of pounds (as approximated) in banks complicit in investing in Israeli weapons (list not exhaustive):

Charity (UK)	Bank(s) Used	Funds Held (Latest)
Islamic Relief Worldwide	Barclays	~£142.7 million cash (2023)
Human Appeal	NatWest	~£14.0 million (2023)[3]
Muslim Hands	NatWest	~£20 million (2023)[4]
Muslim Aid	Lloyds	~£11.0 million (2023)[5]
Orphans in Need	NatWest	~£13 million (2024)[6]
Al-Khair Foundation	Lloyds, HSBC	~£7 million (2024)[7]
One Ummah (Charity)	Barclays	~£14 million (2024)[8]
Salam Charity	Barclays, HSBC	~£2.45 million (2024)[9]
Minhaj Welfare Foundation	HSBC	~£5.9 million (2024)[10]

Islamic Relief Worldwide: The Largest

Islamic Relief Worldwide (IRW) is the sector’s largest player and holds the lion’s share of these funds. In 2023, IRW’s income was £274.6M[11], and it carried over £142 million in cash reserves into 2024. IRW continues to bank with Barclays.

Barclays has been explicitly named as actively implicated in financing Israel’s war machine. According to the UN Special Rapporteur’s June 2025 report, “from Economy of Occupation to Economy of Genocide”, Barclays provided at least $2 billion in loans and underwriting to companies involved in illegal Israeli settlements and arms production, including £862M to Lockheed Martin and £228M to Leonardo (makers of fighter jets and weapons used in Gaza).[12]

In practice, Islamic Relief’s funds are leveraged into billions of pounds of financing – capital that Barclays channels into F-35 jets, missiles, and other tools of genocide in Gaza. This stark contradiction pits IRW’s noble humanitarian mission against the downstream impact of its banking choice. Donations meant to save lives are parked in banks bankrolling the genocide.

Islamic Relief has cited operational needs for using Barclays, claiming only a big global bank could transfer funds into conflict zones reliably, and that closing the account could hurt aid delivery. Yet this justification is starting to ring hollow as the genocide in Gaza reaches unbearable scales.

The charity’s trustees are now being implored by the community to divest swiftly and publicly commit to genocide-free banking policies, lest they “trap the Muslim community in a vicious dilemma” where more of their money, intended to address the impact of genocide is inadvertently fuelling its continuation.[13]

Other Major Charities: Millions in Complicit Banks

IRW is not alone. Prominent UK Muslim charities collectively hold well over £240 million in complicit banks. Key examples include:

Human Appeal banks with NatWest, holding roughly £14 million in cash and short-term assets.[14] NatWest (part of RBS) is listed among banks with ties to Israel’s military industry.
Muslim Hands also uses NatWest, with about £20 million in current assets,[15] as well as Orphans in Need with £13 million in short-term assets.[16]
Muslim Aid banks with Lloyds, holding around £11.0 million in cash and receivables.[17] Lloyds Banking Group is deeply entwined in global finance, including lending to military contractors.
Al-Khair Foundation splits banking between Lloyds and HSBC, with combined £7 million cash on hand.[18] HSBC in particular has a documented history of financing military companies and even had to downsize some relationships under public pressure.
One Ummah Charity until now, relies on Barclays, with ~£14 million in liquid assets by early 2024[19] as indicated by their sort code and account information. Thus, donations meant “100%” for the needy are first 100% deposited into a bank “banking on genocide,” as protesters dub it.[20]

Each of the above charities performs invaluable humanitarian work. Yet their banking choices directly contradict their values, creating a pernicious cycle.

The more donations Muslims raise, the more capital genocide banks gain to invest in arms and apartheid, strengthening the very war machine that fuels the crises our charities are trying to relieve. This money is further multiplied by fractional reserve lending into billions in credit, bonds, and investments for complicit companies.

It is a vicious feedback loop of our own making, and it must end.

Charities Breaking the Cycle

Encouragingly, a few Muslim charities have heeded the call and proven that divestment is both possible and prudent. Ummah Welfare Trust (UWT) – Divested fully, moving its banking to Al Rayan Bank. UWT manages a huge portfolio – over £35 million in cash reserves as of 2024[21]. Penny Appeal and Human Aid UK have also divested fully, cutting ties with the mainstream sector.[22]

The success of UWT and Penny Appeal after divestment has proven that moving to genocide-free banks is both possible and prudent, while continuing to thrive and winning community trust.

The following steps are urgently required by every charity in the sector:

Divest from Complicit Banks Immediately.
Publicly Commit to Ethical Banking Policies. Donors must be informed where their money is held. Charities should publish their banking partners in annual reports and on websites, and certify that those institutions meet ethical criteria. The community deserves this transparency after years of being kept in the dark.
Set a Timeline and Report Progress: We call on charities to announce a clear timeline (e.g. 90 days) to complete the transition.
Collaborate and Share Knowledge. Charities should not view this as a PR risk but as a responsibility. They can collaborate to negotiate better terms with ethical banks as a bloc, or to share experiences transitioning payroll, international transfers, and so on.
Empower Donors and Volunteers. The community must play its part by holding charities accountable. Donors should ask their charities who they bank with, and choose to support those who align with their values. If a charity stubbornly refuses to move its money, Muslims should consider redirecting their donations to those that have. Dismissing concerned members of the community as uninformed or “non-experts” is not only unacceptable but undermines genuine accountability.

The genocide in Gaza is visceral and deeply personal. Muslims see the rubble of schools and the blood of children and ask: what more can be done to stop this? Divesting charities from genocide-complicit banks is one concrete, powerful action within the control of the Muslim community.

By cutting off this flow of capital, we not only hit the war machine at its financial core, but reclaim the spiritual purity of our charity.

References:

[1] https://boycottbanksforpalestine.co.uk/research/relief-charity-sector/

[2] https://www.ethicalconsumer.org/money-finance/israel-deadly-investments#:~:text=Which%20banks%20support%20Israel%3F%20,a%20boycott%20of%20Barclays%20Bank

[3] register-of-charities.charitycommission.gov.uk (Human Appeal) + Balance Sheets

[4] register-of-charities.charitycommission.gov.uk (Muslim Hands) + Balance Sheets

[5] register-of-charities.charitycommission.gov.uk (Muslim Aid) + Balance Sheets

[6] register-of-charities.charitycommission.gov.uk (Orphans in Need) + Balance Sheets

[7] register-of-charities.charitycommission.gov.uk (Al-Khair Foundation) + Balance Sheets

[8] register-of-charities.charitycommission.gov.uk (One Ummah) + Balance Sheets

[9] register-of-charities.charitycommission.gov.uk (Salam Charity) + Balance Sheets

[10] register-of-charities.charitycommission.gov.uk (Minhaj-Ul-Quran) + Balance Sheets