Commonwealth Bank threatens to close long-term clients’ accounts with little-known rules
An Australian businessman described one of Australia’s four largest banks as “Orwellian” because it threatened to freeze his account unless he explained the source of his money.
Louis Christopher, who runs investment research firm SQM, said Commonwealth Bank threatened to cancel and close his bank account because he would not explain to them the source of his money.
The bank recently issued a warning to Mr Christopher, who sent an unexpected threat to the Australian Daily Mail.
“The email came and the first idea was that it was spam,” Christopher said.
“I rang the Commonwealth Bank and they confirmed it was true and if I didn’t comply, they would freeze my account.
“If I don’t tell them the answer to the above questions, they will suspend all my accounts this week and say Ostark gives them the power to do so.”
The bank wants to know how he builds his wealth, why he withdraws cash, if he holds cash at home and why and why he makes certain transactions with third parties.
Louis Christopher says Commonwealth Bank threatens to freeze his bank account because he won’t explain where his money comes from
He described the email as “Orwellian”
“I find this a serious violation of my privacy. My wealth is my business and I think it is a security threat to my family and myself, to share with anyone. ” said Mr. Christopher.
“They asked me to agree to share this information with third parties, including government departments and other commercial credit providers. This is obscene and it is unacceptable.
Mr Christopher, who has been a CBA client since 1978, believes that legal lawyers within the bank are trying to explain Australia’s demands.
The Australian or Australian Transaction Reporting and Analysis Center is the Federal Government’s Bureau of Financial Intelligence and Investigation. It oversees anti-money laundering and anti-terrorism financing laws.
“I think it’s government-driven. Austrac-powered Orwellian stuff.
The federal government allows banks to question the source of cash and the amount deposited by their customers.
This is the main invasion of our privacy and freedom. I really hope they don’t freeze my account. I have always been one of their long-standing clients who can see my history. ” said Mr. Christopher.
Commonwealth Bank is under fire for raising very personal questions to one of its clients
Mr Christopher said the actions of banks and government agencies went too far, saying it was all about collecting data from Australia.
He said: “Put the gun on everyone’s head and said “Unless you answer a very personal question, we will freeze your account. “It should not happen unless there is a court order.”
Banking is an essential service. If they freeze my account, I will not be able to buy food or pay for my mortgage.
Many people told Mr Christopher on social media that they had the same problem and not only the CBA was under fire.
Nick Marshall said: “Before I left Australia, I had a similar experience and if they did not answer personal financial questions, the threatening account would be closed.
“I felt equally annoying, and then a few weeks ago, if I didn’t reveal tax information for the new country, they threatened the same thing.”
Another said: “This happened to me just with Ing. They shut me off and cut off all opportunities without warning.
“I had to jump over the hoop with a bell to access my account. My account is change. I don’t have a lot of money. They are coming for all of us.
A Commonwealth Bank spokesman sent a statement to the Australian Daily Mail to justify its conduct.
“We must consistently manage our clients’ accounts in accordance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, which provides that all banks operating in Australia must collect, verify and maintain customer identification information,” the statement said.
“Just like we need to comply with regulations when opening an account for the first time, we also need to comply with existing laws regarding their identifying information.
“Making sure we have the latest and correct details of our customers can also help us keep them safe and protect them from fraud.”
Contact Australians for comment.
