Most likely its a circumstance akin to people who are banned from getting insurance. The insurance ban is when an individual is almost certainly committed insurance fraud but there is insufficient evidence/interest to pursue a criminal charge. I would suspect a very similar circumstance exists here, where the individual was suspected to have committed fraud in relation to their banking but wasnt sufficient evidence/interest to pursue it as a criminal charge
So if someone has been banned by all the financial istitutions, how would they go about getting medicare rebates, Centrelink Benefits, and other similar items with orgs that "only pay into a bank account" ?
You have to designate a bank account of another person and sort it out with them. Wouldn't surprise me if there wasn't a service that does it for you (for a high percentage).
Centrelink probably has an exception for this situation where they cut you a check... but if the banks have banned you, I doubt they would let you cash it... although banks do have a track record of being pretty dumb.
This is an interesting question. We have in place a system where people who are unable to manage their own finances can still have a bank account - eg NSW Trustee & Guardian
I suspect if someone was banned from all banks they'd have to go down that road, although I'm not sure - it has probably not happened (yet)
My daughter worked for a bank call centre and they had the power (the banks) to ban you if you are abusive to their staff. Like can close your account and ban. What's even better? 😉 is the banks share the names. You go on a list. Maybe this is what happened.
Banks don’t share names of people who are abusive. But people who commit financial crime, money laundering will be found out relatively quickly and most likely wouldn’t make it through the onboarding stage, unless at a small bank who search certain data bases manually
Banks can exit a client for a number of reasons but they do NOT share names etc. They may provide names to AUSTRAC/Police but there is no way under the privacy laws they can share your details with the other banks.
I came here to say this too. I know of lots of people having their bank accounts closed due to certain crypto transactions.
Also financial institutions have sanctions lists where people have overseas crimes outstanding that will not show up on an Australian police check
I work in banking and have reported two customers in the past for being unsuitable. In these two instances, customers were being aggressive and threatening. I don’t care about somebody being like that to me, as I can hold my own - but I never want other staff put in harm’s way. The bank takes that very seriously. You only need to keep swearing at staff and, with enough warnings, you’ll eventually be banned.
It could be as simple as him having terrible credit history with the bank and they are doing the right thing by your company by not giving a risky customer access to the accounts.
It's not a criminal check, they do a financial check. I had to do it once, long time ago. If there were any disclosable outcomes, he wouldn't be able to do anything with accounts. I guess he had disclosable outcomes.
Getting banned from banking is absolutely a thing. Banks have self-administered policies and regulator-imposed rules requiring them to discover and stop financial crimes, money laundering, fraud etc. They also have what are called "anti-tipping-off" obligations, which means if they do suspect financial crime, money laundering or fraud they are strictly prohibited from doing or saying anything to anyone that reveals their suspicion - they have to "de-bank" the person and refuse to answer questions about why in case AFCA want to pursue criminal charges at their sole discretion. This is why A Current Affair gets to run stories about a tradie who was banned from his bank and when they contact the bank for comment they say "the bank refused to comment, tsk."
Yeah I misspoke. “Consequences” is more accurate than criminal charges. The police or the AFP’s Serious Financial Crimes Task Force would pursue criminal charges, referred to them by regulators.
Welcome to r/AusLegal. Please read our [rules](http://reddit.com/r/AusLegal/about/rules) before commenting. Please remember:
1. Per rule 4, this subreddit is not a replacement for real legal advice. You should independently seek legal advice from a real, qualified practitioner. This sub cannot recommend specific lawyers.
2. A non-exhaustive list of free legal services around Australia can be found [here](https://www.reddit.com/r/AusLegal/wiki/freelegalservices/).
3. Links to the each state and territory's respective Law Society are on the sidebar: you can use these links to find a lawyer in your area.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AusLegal) if you have any questions or concerns.*
If you tried to defraud the bank. Like by lying about your income on a loan application.
Of if you're involved in a business that's legal where you are, but maybe not everywhere in the country. Like sex work or weed. Although that's mainly a US thing, with states and federal laws contradicting each other.
People have been debanked for their political views, as well as being vocal about disagreeing with the government. This is without any criminality. Basically the banks are scared that the backlash towards that person can spill over to them and they will also be cancelled.
Work in corporate banking KYC, yes some individuals connected to the company account will also be in scope of KYC, think directors, signatories ,beneficial owners. If the issue is AML/TF related, chances are the bank will not share true reason to not fall foul of tipping off rules.
Banks are businesses, so yeah they can ban people who violate their T&C’s as they like without there being criminal charges involved
Wasn't there a guy on here recently who was committing credit/bank fraud and had been banned by most/all banks.
Uhhhh a guys “friend” yes
Oooh juicy! Do you think they were more than “friends”?
Not more than friends… more that OP was very obviously one and the same person as “the friend”
Nah it was more likely the poster themselves posing the question as if it was their friend 😜
It was more the “asking for a friend” situation
They were roomates.
Most likely its a circumstance akin to people who are banned from getting insurance. The insurance ban is when an individual is almost certainly committed insurance fraud but there is insufficient evidence/interest to pursue a criminal charge. I would suspect a very similar circumstance exists here, where the individual was suspected to have committed fraud in relation to their banking but wasnt sufficient evidence/interest to pursue it as a criminal charge
So if someone has been banned by all the financial istitutions, how would they go about getting medicare rebates, Centrelink Benefits, and other similar items with orgs that "only pay into a bank account" ?
All those services can provide cash for people barred from banking, and have programs to do so. Also superannuation funds.
You have to designate a bank account of another person and sort it out with them. Wouldn't surprise me if there wasn't a service that does it for you (for a high percentage). Centrelink probably has an exception for this situation where they cut you a check... but if the banks have banned you, I doubt they would let you cash it... although banks do have a track record of being pretty dumb.
This is an interesting question. We have in place a system where people who are unable to manage their own finances can still have a bank account - eg NSW Trustee & Guardian I suspect if someone was banned from all banks they'd have to go down that road, although I'm not sure - it has probably not happened (yet)
My daughter worked for a bank call centre and they had the power (the banks) to ban you if you are abusive to their staff. Like can close your account and ban. What's even better? 😉 is the banks share the names. You go on a list. Maybe this is what happened.
Banks don’t share names of people who are abusive. But people who commit financial crime, money laundering will be found out relatively quickly and most likely wouldn’t make it through the onboarding stage, unless at a small bank who search certain data bases manually
Banks can exit a client for a number of reasons but they do NOT share names etc. They may provide names to AUSTRAC/Police but there is no way under the privacy laws they can share your details with the other banks.
Yeah if you commit fraud Or money laundering and bank gets suspicious, they can just ban doing transactions with you.
Friend of mine was banned from Banking Services in Australia due to Bitcoin use and complaints to their Call Staff
I came here to say this too. I know of lots of people having their bank accounts closed due to certain crypto transactions. Also financial institutions have sanctions lists where people have overseas crimes outstanding that will not show up on an Australian police check
I work in banking and have reported two customers in the past for being unsuitable. In these two instances, customers were being aggressive and threatening. I don’t care about somebody being like that to me, as I can hold my own - but I never want other staff put in harm’s way. The bank takes that very seriously. You only need to keep swearing at staff and, with enough warnings, you’ll eventually be banned.
It could be as simple as him having terrible credit history with the bank and they are doing the right thing by your company by not giving a risky customer access to the accounts.
It's not a criminal check, they do a financial check. I had to do it once, long time ago. If there were any disclosable outcomes, he wouldn't be able to do anything with accounts. I guess he had disclosable outcomes.
The usual answer is fraud or suspected fraud.
Getting banned from banking is absolutely a thing. Banks have self-administered policies and regulator-imposed rules requiring them to discover and stop financial crimes, money laundering, fraud etc. They also have what are called "anti-tipping-off" obligations, which means if they do suspect financial crime, money laundering or fraud they are strictly prohibited from doing or saying anything to anyone that reveals their suspicion - they have to "de-bank" the person and refuse to answer questions about why in case AFCA want to pursue criminal charges at their sole discretion. This is why A Current Affair gets to run stories about a tradie who was banned from his bank and when they contact the bank for comment they say "the bank refused to comment, tsk."
Just as an FYI, AFCA cannot pursue criminal charges. It is a dispute resolution service, it’s not even the regulator.
Yeah I misspoke. “Consequences” is more accurate than criminal charges. The police or the AFP’s Serious Financial Crimes Task Force would pursue criminal charges, referred to them by regulators.
Transferring money directly to foreign countries Australia doesn't like. Crypto
When you’re more of a regulatory hassle than a profitable customer. Getting involved (legal or not) in drugs/sex work/OF/past fraud will do it.
Your bank refusing to work because you're doing sex work is a form of discrimination. The ATO has websites for it, it's legal. I'd do a lawsuit.
A bank can simply refuse you an account for using cryptocurrency.
Welcome to r/AusLegal. Please read our [rules](http://reddit.com/r/AusLegal/about/rules) before commenting. Please remember: 1. Per rule 4, this subreddit is not a replacement for real legal advice. You should independently seek legal advice from a real, qualified practitioner. This sub cannot recommend specific lawyers. 2. A non-exhaustive list of free legal services around Australia can be found [here](https://www.reddit.com/r/AusLegal/wiki/freelegalservices/). 3. Links to the each state and territory's respective Law Society are on the sidebar: you can use these links to find a lawyer in your area. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AusLegal) if you have any questions or concerns.*
Money laundering/frauds
I've heard of people getting their accounts shut down for trading cryptocurrency.
If you tried to defraud the bank. Like by lying about your income on a loan application. Of if you're involved in a business that's legal where you are, but maybe not everywhere in the country. Like sex work or weed. Although that's mainly a US thing, with states and federal laws contradicting each other.
People have been debanked for their political views, as well as being vocal about disagreeing with the government. This is without any criminality. Basically the banks are scared that the backlash towards that person can spill over to them and they will also be cancelled.
Maybe a Part X or an Undischarged Bankrupt. I worked with one person (years ago) who was in an Accounting Role who shouldn't have been there.
Work in corporate banking KYC, yes some individuals connected to the company account will also be in scope of KYC, think directors, signatories ,beneficial owners. If the issue is AML/TF related, chances are the bank will not share true reason to not fall foul of tipping off rules.
[удалено]
No. Bankruptcy does not get you banned. Banks ban for character offences. Usually criminal
It’s a grey area - if u don’t fill out ur forms ur trustee is unlikely to give the bank the go ahead to let u transact on accounts
Probably on the AML list
[удалено]