Latest news with #LouisChristopher
Yahoo
7 days ago
- Business
- Yahoo
Commonwealth Bank controversy exposes $60 billion reason why you could get locked out of your account
Australians have been warned that if they don't comply with their bank's request for personal information, they could be blocked from accessing their accounts. That's what happened to Louis Christopher, who branded a Commonwealth Bank of Australia (CBA) request for information as "disgusting". A CBA spokesperson told Yahoo Finance the bank was following anti-money laundering legislation and the Know Your Customer policy, which is handed down by the Australian Transaction Reports and Analysis Centre (AUSTRAC). It's another slice of power financial institutions have in their arsenal to combat financial crimes, like money laundering, fraud or scams. Outside of freezing accounts to determine a person's funds are legitimate, the banks have also recently been scrutinised over their power to refuse cash withdrawal requests. If customers can't explain where the money is going, or if the bank determines there's a risk of scam, you could end up like Tim, who was stopped by Westpac from seizing a $6,500 cryptocurrency opportunity. Swinburne University Professor Steve Worthington told Yahoo Finance banks are caught between a rock and a hard place as they try to stop financial crime, and that sometimes customers won't agree with their methods. "You're damned if you do, and damned if you don't," Worthington said. Commonwealth Bank customer rages over threat to cut access to his money: 'Seven day deadline' Dad with no savings reveals surprising money message for struggling Aussies: 'Living pay to pay' Coles shopper 'stunned' after getting $50 item free due to little-known rule: 'Insane' Stopping scams and money laundering from happening is a no-brainer. Aussies lost a collective $2 billion to scams in 2024 (although thankfully that's a 25.9 per cent decrease from 2023). Similarly, the Australian Institute of Criminology estimated that serious and organised crime cost Australia up to $60.1 billion in 2021. Criminals are coming up with new ways to steal and launder money in this increasingly digital world, which they use to fund sex and drug trafficking, child exploitation, fraud, terrorism and other illicit activities. In order to prevent this scourge on the community, banks have to ask certain questions about your money, where it came from, and why it's being spent. Unfortunately, that leaves people furious because it seems invasive. A poll of more than 10,000 Yahoo Finance readers found 71 per cent felt banks have no right to ask you about your it comes to KYC requests, banks will ask you a range of questions to make sure their systems are as up to date as possible. It can be as simple as your name and address, or, in Christopher's situation, you can be asked to explain your "source of your money and your wealth". The 52-year-old SQM Research founder told Yahoo Finance that handing over that type of personal information left him worried. He's been with CBA for nearly 50 years and said there hasn't been anything "abnormal" recently that he felt warranted such a specific probe. "I regard that as a potential security threat to have that information out there on my family," he said. "I've been treated as a likely criminal if I don't provide this very, very personal information, and that's not on." CBA sent him an email in April and a follow-up in May, warning that if he didn't comply with the information request within seven days, he would be locked out of his account. He was told he also wouldn't be able to use his cards at ATMs, shops or online, and was told there would be "flow on consequences" for not acting fast enough. The SQM Research founder felt he was being unfairly singled out, even though he had done nothing wrong. However AUSTRAC told Yahoo Finance why everyday Aussies with no history of misdeeds might be asked for information like this. "Banks ask customers questions and ask them to provide verification so they can understand what a normal transaction looks like for their customers," a spokesperson said. Knowing what a regular transaction history looks like can help financial institutions spot ones that might be dodgy in other peoples' accounts. AUSTRAC said it doesn't prescribe what type of punishment to dish out for non-compliance in KYC requests, as that's up to each financial institution to decide. "AUSTRAC does not require banks to deny services, freeze or close customer accounts," a spokesperson told Yahoo Finance. "Banks need to know the money laundering risks posed by the services they provide and the customers they provide them to, and have processes to manage those risks." But, anti-money laundering legislation has a specific clause that grants financial institutions this power. The law states that banks are well within their rights to do the following until customers do eventually comply: refuse to continue to provide a designated service to the customer refuse to commence to provide a designated service to the customer restrict or limit the provision of a designated service to the customer Banks will also have terms and conditions that allow them to do this for cash withdrawals or movements of money, which customers agree to (whether every person reads those T&Cs is up to them). Commonwealth Bank was supported by the Australian Banking Association (ABA), which said this type of punishment was necessary to ensure KYC protocols are followed by customers. "Banks have strict obligations under Australia's anti-money laundering laws to verify customer identity and understand the nature of their financial activity," a spokesperson told Yahoo Finance. It said KYC isn't just for banks to stop money laundering, but also plays a "vital" role in protecting Aussies from fraud, scams and the use of accounts by money mule networks. Money mule networks are bank accounts used for illegal activities and serves, and act as an intermediary between the scammer and the illicit funds. Rather than having all the scammed money in one account, they can send it to multiple, both in Australia with different banks and overseas, to make it harder for authorities to track it down. "Banks are required to periodically confirm that KYC information is correct and are not permitted to continue to provide services when they are aware that information is out of date," the ABA spokesperson added. "This means that if a customer doesn't respond to repeated requests for information, banks may be legally required to restrict or close the account. "These checks are essential to protect customers and the financial system from fraud, scams and criminal misuse."
Daily Mail
20-05-2025
- Business
- Daily Mail
Barefoot Investor Scott Pape unleashes at the Reserve Bank for lowering interest rates
The Barefoot Investor has taken a swipe at the Reserve Bank of Australia, claiming young people should be 'p**sed off' the bank decided to cut the cash rate because it would cause house prices to surge. On Tuesday afternoon, the RBA eased the cash rate by 25 basis points to 3.85 per cent - a low which has not been seen since June 2023. Scott Pape said while the cash rate cut would alleviate mortgage repayments for millions of Aussies it would have a negative impact on young people trying to get into the property market. Mr Pape said young Aussies should be 'pissed' at the decision as it means property prices would inevitably increase. 'If I was a young person right now I would be pretty pissed off,' Mr Pape told 'Every time a young person gets close, it just keeps getting more expensive.' Mr Pape also took aim at the Albanese government for introducing a five per cent deposit scheme for first-home buyers,' labelling the policy as 'totally stupid'. Experts have warned the policy, which is set to come into effect from January 1, 2026, would ultimately push house prices up. 'People shouldn't be buying a home in one of the most expensive cities in the world if they can't afford it,' Mr Pape said. 'I don't understand how a responsible government can stand by and say this is a good thing.' SQM Research Managing Director Louis Christopher said he expects property prices to rise from now and into 2026, with a 10 per cent increase by the end of the year. Mr Christopher said auction clearance rates would skyrocket due to the rate cut and advised first-home buyers to try and enter the market before the end of 2025. 'First home buyers are in a better buying position compared to six months ago,' Mr Christopher said. 'Their purchasing and borrowing power has increased. However, if I am right about price rises, they will need to move quickly, otherwise they will be back to square one on affordability.' An owner-occupier borrower with an average $660,000 mortgage would save $107 on their monthly repayments with the latest rate cut, as typical variable home loan rates with the major banks fell under six per cent. ANZ became the first of the Big Four banks to announce it would match the RBA's latest rate cut with a 25 basis point cut to its variable rates. This means its online-only rate is falling to 5.59 per cent on May 30. Westpac followed seven minutes later, matching ANZ's equally lowest online-only mortgage rate but from June 3. The Commonwealth Bank matched its competitors shortly after, with borrowers getting relief on May 30. Australia's biggest home lender updated its forecasts to have more rate cuts in August and November, with relief at the RBA's next meeting in July a 'live' possibility. NAB's lowest online-only rate is falling to 5.94 per cent on May 30, but it's available for borrowers with a small five per cent deposit. Ms Bullock acknowledged the 13 rate rises in 2022 and 2023 were challenging for borrowers, who copped the most aggressive pace of monetary policy tightening since the late 1980s. 'I know this period of relatively high interest rates has been and continues to be challenging for many households and businesses but it was essential that we brought inflation down,' Ms Bullock said. The RBA declined to suggest more rate cuts were coming but left the door open for further relief as inflation is expected to fall into the target band. 'Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance,' RBA said.
News.com.au
20-05-2025
- Business
- News.com.au
‘Pissed': Great Australian Dream dashed as housing prices set to soar amid rates cut
Young Aussies doing away with the smashed avocado and scraping together pennies for their first home should be 'pissed off' by the Reverse Bank's decision to cut the cash rate again. That's the message from experts who agree that house prices could rise by up to 10 per cent in the coming months as a result of the decision. The RBA decided to cut the cash rate on Tuesday afternoon by 25 basis points to 3.85 per cent, providing much-needed relief to homeowners. The widely anticipated move was the second reduction of the year for the cash rate, now at its lowest since May 2023. However, SQM Research managing director Louis Christopher said the rate cut would send auction clearance rates soaring, predicting property prices to rise 10 per cent by the end of the calendar year. Mr Christopher said first-home buyers needed to get in before the back end of 2025. 'It is very likely housing prices will rise from here and continue into 2026,' Mr Christopher said. 'From today's rate cut and the one in March, first home buyers are in a better buying position compared to six months ago. 'Their purchasing and borrowing power has increased. However, if I am right about price rises, they will need to move quickly, otherwise they will be back to square one on affordability.' Barefoot investor Scott Pape said that while the rate cut would help those trying to pay off their mortgage, it would also see more of the 'wrong people' get into the housing market. 'If I was a young person right now I would be pretty pissed off,' Mr Pape told 'Every time a young person gets close, it just keeps getting more expensive.' Mr Pape also slammed the Albanese government's five per cent deposit scheme – which will come in from January 1 next year – saying it would do 'a lot of damage'. 'It's stupid, totally stupid,' Mr Pape said. 'People shouldn't be buying a home in one of the most expensive cities in the world if they can't afford it. 'I don't understand how a responsible government can stand by and say this is a good thing.' The second rate cut came after inflation data released late last month showed the all-important trimmed mean inflation, which came in at 2.9 per cent for the March quarter, down from 3.3 per cent in the December quarter. It was the lowest annual inflation rate since December 2021 and fell back within the RBA's 2 to 3 per cent target range. The RBA has left the door open for further rate cuts, saying the outlook for inflation is that it would sustainably fall into the target band. 'Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance,' the board said.
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.'
News.com.au
15-05-2025
- Business
- News.com.au
Commbank criticised over demands for financial information
SQM Research managing director Louis Christopher has criticised Commbank after it threatened to shut off his accounts unless he complied with "Orwelian" requests about his financial information. Mr Christopher took to social media on Tuesday to express his disgust with an email sent to him by the major bank, demanding to know how he acquired his wealth, why he had made transactions to certain parties, why he had made cash withdrawals, and whether he kept any cash at home. CBA said his accounts would be suspended this week if he failed to hand over the information. 'This is a security risk for me and my family,' Mr Christopher told Sky News Australia. 'Effectively, I felt like I had a gun held to my head, if I didn't answer these questions correctly. 'I've had thousands of responses … of people who have had their accounts frozen over this.'
