The House Committee on Financial Services Subcommittee on Oversight and Investigations held a hearing to consider how anti-terrorist financing laws impact charities. This is the first time an oversight hearing considered how Treasury's policies impact charitable groups since 9/11.

Kay Guinane, the program manager for the Charity and Security Network, which is a project of OMB Watch, testified at the hearing. She noted that the "hearing is a critical first step in calling attention to an often overlooked and serious problem: barriers current national security laws and policies create for legitimate charitable, development, educational, grantmaking, peacebuilding, faith-based, human rights and similar organizations."

American Civil Liberties Union (ACLU) Policy Counsel Michael German was another panelist and said in his testimony, "It is Congress' obligation and duty to investigate and evaluate the Treasury Department's anti-terrorism financing efforts to ensure they are fairly and effectively targeting those entities that specifically intend to support illegal activities of terrorist organizations. Congress must also ensure that a system is put into place that will provide transparency and due process while allowing legitimate aid and services to flow unimpeded."

They both criticized policies in place where the government can shut down charitable organizations suspected of having ties to terrorist groups, without independent oversight, probable cause, or due process. Guianne noted that the U.S. charities account for only 1.68 percent of all "specially designated global terrorists" (SDGTs).

Daniel Glaser, deputy assistant Treasury secretary for terrorist financing and financial Crimes, told the committee that the agency's work has "had the unfortunate and unintended consequence of causing a chilling effect on well-intentioned donor activity within Muslim American communities."

Rep. Keith Ellison (D-MN) expressed an understanding of the experiences of charities and donors. Ellison asked about what happens to the frozen funds of charities, and the lack of appeal process for groups whose money has been frozen.

For more information, check out the Charity and Security Network's website.