Gov, regulators and bank taking action to monitor debanking

The government is taking action to closely monitor and address the practice of debanking, which involves cutting off risky fintechs from banking services. 

In collaboration with regulators, banks, and affected industries, they are implementing a response based on recommendations from the Council of Financial Regulators (CFR), AUSTRAC, the ACCC, and the Department of Home Affairs. Recognising the seriousness of debanking, the government supports the collection of clear and insightful data on its occurrences in Australia. 

This data will aid in monitoring debanking and informing future policies. The Treasury, in cooperation with APRA and major banks, will design a voluntary data collection process. 

The Australian Banking Association (ABA) will consider the government's response, emphasising that banks are committed to fulfilling their anti-money laundering obligations and taking a risk-based approach to their operations and customer base.

- CyberBeat