Muslim groups urge government to abolish the CRA’s terror-financing unit
Canada’s national security watchdog review is being used to pressure the government to curtail or abolish the unit responsible for monitoring terror-financing risks within the charitable sector.
Canada’s national security watchdog review is being used to pressure the government to curtail or abolish the unit responsible for monitoring terror-financing risks within the charitable sector on the grounds that its work constitutes “systemic Islamophobia.”
The National Security and Intelligence Review Agency released its report earlier this month following a two-year investigation into the CRA’s Review and Analysis Division. The review found that between 2009 and 2022, 67 per cent of RAD’s completed audits involved charities identified as Islamic and 19 per cent involved Sikh charities.
It stated that some audits were launched “even though there was no clear risk of terrorist funding” and that the CRA lacked adequate safeguards to detect or prevent bias.
The NSIRA recommended that the CRA require a “clear credible reason related to terrorist-financing risks” before initiating audits and that it collect demographic data to determine whether certain groups are being disproportionately scrutinized.
The CRA agreed to most of the recommendations but rejected the proposal to collect demographic information, stating that it does not ask charities to identify religious or cultural affiliation. Appearing on CPAC, a NCCM spokesperson said the review “sadly confirmed” what the organization and its partners have alleged for years, describing the results as “deeply troubling” and evidence of “systemic Islamophobia” within federal agencies.
On CPAC, the NCCM spokesperson said that Muslim-led charities had been “unfairly and disproportionately targeted under the guise of national security.”
A spokesperson for the Canadian Council of Imams said the CRA’s approach has been “disproportionate and deeply flawed.” He stated that Muslim charitable organizations collectively raise nearly $500 million annually and “often surpass the general population in their level of financial contributions.”
He said time spent answering investigators causes “real harm” to mosques, volunteers, and community leaders, adding that “you can’t protect Canada by weakening the very people that make it stronger.” He said no charity should be targeted because of “where they send humanitarian aid.”
The NCCM has previously called to abolish the CRA’s Review and Analysis Division, citing findings from its 2021 joint report with the University of Toronto’s Institute of Islamic Studies, “Under Layered Suspicion.”
The study alleged that Muslim charities were being “othered” through national-security frameworks and that the CRA’s audit process had eroded trust within the community.
Similar conclusions were drawn by the Senate Standing Committee on Human Rights in 2023, which reported that Muslim-led charities were “audited more frequently than others” and recommended that the NSIRA review the CRA’s counter-terrorism audit practices.
In 2021, the CRA’s Review and Analysis Division issued a 150-page administrative fairness letter alleging that the Muslim Association of Canada, a charitable organization, had alleged affiliations to the Muslim Brotherhood and had supported a charity later designated a terrorist entity for financing Hamas before cutting ties with that group. The MAC denies affiliations to the Muslim Brotherhood and has described the audit as biased and Islamophobic.
The CRA initially recommended revoking the MAC’s charitable status, but later amended its position, imposing a $1.3 million penalty and entering a compliance agreement instead. Portions of the audit remain sealed under court order.
The CRA maintains that international standards guide its audits to prevent the misuse of charitable funds for terrorism financing and that all organizations are treated equally under the law.
The agency said it will implement new measures to improve documentation of risk assessments and oversight of audit decisions.
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