The Palestinian NGOs Network (PNGO) has issued a new paper titled: "Banking Restrictions on NGOs' Access to Financial Services," based on a survey covering 98 Palestinian NGOs, including 74 from the Gaza Strip, 11 from the West Bank and Jerusalem, and 13 operating in both areas. The paper highlights the banking challenges facing the work of NGOs and their direct repercussions on the continuity of services provided to affected communities.
The findings show that having a bank account does not necessarily mean being able to use it, as 47 out of 94 organizations with accounts reported that their accounts are inactive, most of them concentrated in the Gaza Strip, where 42 organizations reported inactive accounts versus 29 organizations with active accounts. Additionally, 26 organizations reported that they had attempted to open a new account over the past twelve months but were unable to do so, while 14 of them received no clear reason for the refusal.
The paper revealed a close relationship between the banking crisis and institutional procedures, as 42 organizations (42.9%) reported that problems with registration, renewal, or accreditation of boards of directors affected their ability to open or use their accounts. The paper documented a recurring pattern in which administrative delays turn into account freezes, then into disruptions in the payment of salaries and supplier dues, ultimately leading to project stoppage and loss of funding. Furthermore, 31 organizations (68.9%) out of 45 were unable to regain access to their accounts, while 12 organizations are still awaiting the outcome of the review.
The paper noted that the impact of these restrictions extends to beneficiaries, as 66 organizations reported that beneficiaries of their projects are expected to be affected, with an estimated total of approximately 3.7 million beneficiaries, while noting that this figure represents the sum of organizations' estimates and may include duplication in counting beneficiaries. It also pointed out that some organizations were forced to channel funds through intermediary organizations or lost grants and projects, which threatens the principles of localization and partnership with local organizations.
The paper called for obligating banks to provide clear written reasons for refusing to open or freeze accounts, establishing a rapid appeals and review mechanism, putting in place transitional arrangements that prevent the paralysis of accounts when board accreditation is delayed, and facilitating remote verification and data-updating procedures for organizations operating in Gaza. It also called for enhancing coordination with the Palestinian Monetary Authority, banks, and official bodies, and protecting direct funding to local organizations from the effects of banking restrictions.
In its conclusion, the paper affirms that banking restrictions represent a real threat to the continuity of service delivery, and are not merely an administrative or financial matter internal to organizations, and that addressing them requires effective cooperation among official, banking, donor, and civil society entities.
