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.
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.
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.
A 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.”
