The Australian Banking Association has published an updated industry guideline of good industry practice for how banks may support and provide extra care for customers experiencing financial abuse.

The guideline says that “financial abuse occurs when another person exerts power and control to exploit, monitor or sabotage someone’s access to, or use of, money, finance or property, business assets and liabilities, without their knowledge or consent. In some situations, a person may feel pressured, coerced or unable to refuse a directive from the person causing harm.”

The guideline applies to customers to whom the Banking Code applies. It includes individuals, small businesses and guarantors.

Part B2 of the Banking Code includes a commitment that member banks will take extra care with customers who are experiencing vulnerability, including financial abuse and the abuse of older people.

The guideline explains what financial abuse is, how a bank may recognise that a customer is experiencing financial abuse, and the steps a bank may take to help when they are aware a customer is experiencing financial abuse.

If you found this article helpful, then subscribe to our news emails to keep up to date and look at our video courses for in-depth training. Use the search box at the top right of this page or the categories list on the right hand side of this page to check for other articles on the same or related matters.

Author: David Jacobson
Principal, Bright Corporate Law
Email:
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.