Banks are acting in accordance with Australia’s Anti-Money Laundering Act.
Commonwealth Bank customers raised concerns after being quized about their intentions when withdrawing large amounts of cash.
Banks are asking detailed questions about cash transactions with customers (including deposits) in response to government pressure to address money laundering concerns.
Australian businessman Louis Christopher is a co-founder of real estate data agency SQM Research, and has been labelled “abhorrent” for several inquiries.
He claimed he received an email asking for information on how he created his wealth, why he holds cash at home, and whether he made certain payments to third parties.
He shared a copy of further communications from Commbank, including warnings that if his account did not respond, they could be restricted or closed within seven days.
The bank also threatened to halt its ability to use automatic counter devices and bank cards.
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The communication cited Australia’s Know Your Customer (KYC) obligation. This requires financial institutions to verify their client identity and understand the source of wealth in order to comply with anti-money laundering laws.
The Epoch Times reached Austrac, the Australian trading report and analysis centre, for comment.
Other customers have spoken out too.
Australian Academic Eva Barnut said she hired an attorney after Commbank first rejected a large-scale cash withdrawal request.
Bernat was able to access cash after filing the complaint, but Commbank said he had requested a receipt to confirm the purchase.
“People are leaving the bank in large numbers, and no one is surprised,” she said.
Burnut has filed an official complaint with the Australian Financial Complaints Agency (AFCA), a dispute resolution service for bank customers. The AFCA was also contacted for comment.
Former Queensland Prime Minister Campbell Newman said there was no point in trying to break financial crime by imposing a deficit on honest businessmen.
“(Money anti-money laundering) The law they stand with is strict, authoritarian and gives banks an excuse to act very unfairly,” he said.
Australia will be holding $50, $20, $5, and $5 bills in wallets in Sydney, Australia on March 25, 2025, and Australian Medicare cards. Lisa Marie Williams/Getty Images
A Combank spokesperson said banks should comply with the 2006 Money Laundering and Counterterrorism Financing Act.
“All banks operating within Australia must collect, verify and maintain customer identification information,” the spokesman said.
“Just as customers must comply with regulations when they first open an account, they must also follow current laws regarding the maintenance of identification information.
“By making sure you have the most up-to-date and correct details of your customers, you can also keep them safe and protect them from fraud.”
