Latest news with #Anti-MoneyLaunderingandCounter-TerrorismFinancingAct2006
Epoch Times
15-05-2025
- Business
- Epoch Times
Australia's Largest Bank Quizzing Customers for Details on Cash Withdrawals
Commonwealth Bank customers have raised concerns after being quizzed about their intentions when withdrawing large amounts of cash. Banks have asked more detail questions about cash transactions with customers (including deposits) in response to government pressure to deal with money laundering concerns. Australian businessman Louis Christopher, co-founder of real estate data agency SQM Research, labelled some of the inquiries 'disgusting.' He claimed he received an email asking for information on how he created his wealth, why he was making cash withdrawals, if he was holding cash at home, and why he had made certain payments to third parties. He shared copies of further correspondence from CommBank, including a warning that his accounts could be restricted or closed within seven days if he did not respond. The bank also threatened to stop his ability to use automatic teller machines and bank cards. Related Stories 2/24/2025 4/30/2025 The correspondence cited Australia's Know Your Customer (KYC) obligations, which require financial institutions to verify customers' identities and understand the source of their wealth in order to comply with anti-money laundering laws. 'They were going to suspend all my accounts this week if I didn't tell them the answers ...,' Christopher The Epoch Times has contacted AUSTRAC—the Australian Transaction Reports and Analysis Centre—for comment. Other customers have also spoken out. Australian academic Eva Bernat said on X she hired a lawyer after CommBank initially refused her request for a large cash withdrawal. While Bernat was able to access her cash after lodging complaints, she said CommBank still demanded receipts to verify her purchases. 'People are leaving banks in droves, to no one's surprise,' she said. Bernat has lodged an official complaint with the Australian Financial Complaints Authority (AFCA), a dispute resolution service for banking customers. AFCA has also been contacted for comment. Former Queensland Premier Campbell Newman said there was no point trying to stamp out financial crime by imposing red tape on honest businesspeople. 'The [anti-money laundering] laws as they stand are draconian, authoritarian, and give banks an excuse to act quite unreasonably,' he said. Australian $50, $20, and $5 banknotes, and Australian Medicare card in a wallet in Sydney, Australia on March 25, 2025. LisaA CommBank spokesperson said the bank was required to comply with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. 'All banks operating within Australia are required to collect, verify, and maintain customer identification information,' the spokesperson said. 'In the same way that we need to comply with regulations when a customer first opens an account, we also need to comply with current law regarding the maintenance of their identification information. 'Ensuring we have a customer's most up-to-date and correct details also helps us to keep them safe and protect them from fraud.'
Yahoo
14-05-2025
- Business
- Yahoo
Commonwealth Bank customer rages over threat to cut access to his money: 'Seven day deadline'
A Commonwealth Bank (CBA) customer feels like he is being "treated like a criminal" after the major bank threatened to cut off his access to his money if he didn't reveal exactly how he made it. Louis Christopher has been a member of Australia's biggest bank since opening a Dollarmites account in 1978. The Sydney resident told Yahoo Finance he was "disgusted" when an email landed in his inbox asking him to detail the "source of his funds and wealth". The 52-year-old founder of SQM Research was given a seven-day deadline before he wouldn't be able to use his cards at ATMs, shops or online, with a warning of the "flow on consequences" if he didn't comply. "I've done nothing abnormal in my account recently," Christopher told Yahoo Finance. "You would think with that type of history, they would be a bit careful with their long-standing customers. On top of the source of his wealth, the bank wanted to know why he had withdrawn cash, if he was holding cash at home, and details around why he made transactions with certain parties. "I've been treated as a likely criminal if I don't provide this very, very personal information, and that's not on," he added. Christopher is right that the bank makes regular probes into Australians' finances under its obligations to investigate money laundering. Commonwealth Bank told Yahoo Finance it was following a national policy — Know Your Customer (KYC). 'We are required to manage our customers' accounts in line with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006," a spokesperson said. Millions of Aussies risk losing bank account access: 'Not a scam' Retirement warning as controversial $3 million superannuation tax change looms: 'Be proactive' Local pubs being decimated by $4,000 'un-Australian' move: 'Should be free' This law requires all banks across the country to collect, verify and maintain customer identification information. Every now and then, financial institutions will reach out to customers to ensure they have their latest details on file. All banks are required to take action if there is non-compliance, including locking customers out of their accounts. CBA said these rules are set by the Australian Transaction Reports and Analysis Centre (AUSTRAC). "In the same way that we need to comply with regulations when a customer first opens an account, we also need to comply with current law regarding the maintenance of their identification information," the spokesperson told Yahoo Finance. "Ensuring we have a customer's most up-to-date and correct details also helps us to keep them safe and protect them from fraud.' But Christopher felt the request went too far and questioned how secure the details would be, particularly in an era where data breaches and leaks aren't unheard of. "I regard that as a potential security threat to have that information out there on my family," he told Yahoo Finance. He took particular issue with the idea that his data doesn't just go to CBA. The bank can share details with certain third parties, such as: Joint account holders Brokers, advisers and people who act on your behalf Service providers, such as product distributors Businesses who do some of our work for us, including direct marketing and IT support Other financial institutions (such as banks), auditors, insurers and re-insurers; and Government and law enforcement agencies or regulators Overseas groups and entities However, they're not shared with all of these third parties every time there is a KYC request. "That's not acceptable... I have no idea how they're going to use that information," Christopher said. "I would have been fine if it were just simply double-checking what my driver's license is and those types of essential things. "But to take it as far they did... it's basically putting my head to a gun." "The only grounds where there should be a situation where they demand to know what you're doing with your money should be by a court order." Yahoo Finance has reached out to AUSTRAC for comment. This comes off the back of banks copping heat for asking customers detailed information about cash withdrawals and their intentions about how they would spend them. It has raised questions about how much financial institutions need to know about your money movements, your autonomy to take financial risks, and their obligations to protect customers against scams. Christopher shared his experience online and was met with many other Australians who had been quizzed over their finances in recent months, some with accounts blocked. "I went through the same thing. They actually did suspend a joint account. I verified my information but the other party did not. I'm having a terrible time trying to access what is mine," wrote one person. "Had this same email and a letter sent to me, but from NAB Bank. I ended up caving in and providing them details," added another. A third claimed they had accounts closed or restricted after being "interrogated" about their spending practices by CBA and other Australian banks. A third said they had "similar experiences" with CBA and other Australian banks, with accounts closed or "One bank even asked invasive questions and for full transaction history of my purchases," they said. Banks have different time limits on when you have to provide your banking information. The information needed will also depend on the customer, but you can be asked for your full name, date of birth, address, what you use your account for, and how much money comes in and out each month. You also might need to provide details related to your driver's licence, Medicare card, passport or birth certificate. If customers receive an email from their bank and they are worried whether it's legitimate, they are urged to go into their app, where they will have a notification about inputting their data, or they can call or visit a branch and do everything in while retrieving data Sign in to access your portfolio Error while retrieving data
