Forced closure of account - Help needed

[LionKing]

Hello everyone,
I got a mail saying that my bank accounts are getting closed because the nature of activities did not match with the bank's appetite.
I wanted to appeal against the decision, made a few phone calls however was not successful.
I wonder if there's any chance that I can ask for someone to review the decision?
The decision has also made my other accounts in the same bank overseas closing, therefore I am unable to access any funds. when I am overseas.
I am really concerned and some help would be helpful.

 

[Mwenenzi]

Hello everyone,
I got a mail saying that my bank accounts are getting closed because the nature of activities did not match with the bank's appetite.
I wanted to appeal against the decision, made a few phone calls however was not successful.
I wonder if there's any chance that I can ask for someone to review the decision?
The decision has also made my other accounts in the same bank overseas closing, therefore I am unable to access any funds. when I am overseas.
I am really concerned and some help would be helpful.

For AU banks --- https://www.afca.org.au/
To me nothing wrong with a business sacking a customer. Done so myself.

 

[Happy Dude]

WTF is "bank's appetite"?

CBA recently informed me that they'll be closing an account I'd not used for years due to inactivity. They gave me an option to keep it open if I wished. Ask them why they're closing it/them, and if you disagree with their rationale, escalate it. What are the chances of AFCA siding with you?

 

[levelnine]

You're unlikely to get anywhere. Banks do not (indeed, often are required by law not to) disclose the reasons for an account closure. And they almost never reconsider their decision. They are not required to do business with you.

Your best bet is to move on to another bank.

 

[aspro2]

Yeah, there's no recourse I'm aware of. HSBC did similar to me after I'd been with them for 14 years, using an account opened correctly for use with my sole trader business, in the business name ("me trading as this"), and having at the time of opening paid a fee for HSBC to do a business search in order to authorise opening the account. Suddenly I got a letter saying I was using the account for business, and this was not permitted. FFS.

 

[SYD]

Hello everyone,
I got a mail saying that my bank accounts are getting closed because the nature of activities did not match with the bank's appetite.

Did you complete the relevant KYC/AML ID checks?

I’ve been receiving requests for those across all sorts of financial products over the last few years as they clamp down on money laundering.

The decision has also made my other accounts in the same bank overseas closing, therefore I am unable to access any funds. when I am overseas.

There are plenty of free Oz banking products that allow you to access funds (via ATMs) for free or via the attached DCs. eg Macquarie Bank, UBank, ING and others.

 

[AustraliaPoochie]

If the bank is overseas, would be impossible.
If the bank is in Aus, as others say, pick another, or go with Wise or prepaid with EML ie Auspost one, or QFmoney.
---
Most likely it's to do with your answers in their questions, re (AML/CTF/KYC), that you earn money in a weird way.

 

[SeaWolf]

This does sometimes happen, there's even a name for it, debanking.
You can make a complaint to AFCA about it and they even have a fact sheet about account closures and what to expect.
Of note though, AFCA states on the fact sheet:

AFCA generally accepts that a financial firm can stop providing a financial product or service, so it is unlikely we will require the financial firm to reopen the account.

So that should guide your expectations about the likely outcome of a complaint.
Without knowing anything about your financial circumstances, debanking is usually because of:

• Cryptocurrency purchases or trades. The banks seem very averse to these.
• Something that indicates you're running a business in a perfectly legal industry the bank doesn't like.

There's also an exhausting and technical guide on AUSTRAC's website to provide guidance to banks on how to service customers in these higher risk categories. AUSTRAC had previously indicated concern that debanking these customers would reduce the effectiveness of anti-laundering systems, as without access to the formal financial system, customers may seek out unregulated channels.

There had previously been some discussion around making it harder for banks to just ditch customers, much like the restrictions on telcos and electricity providers, but nothing ever came of it.

None of that really helps you though, I think it's probably a lost cause but you should certainly try the AFCA route just in case. The above might help you get some understanding around the process though, to avoid it happening again.

 

[MEL_Traveller]

There was a story on ABC or something just the other day about debanking… which happens with ‘money mules’. Accounts being used by criminals to transfer money.

But what’s amazing is that the bank can identify and shut these accounts in an instant. Yet allow scams and fraud to proceed, with victims losing tens of thousands.

Poor show by the banks.