Banks develop new policies to help customers suffering economic abuse by their partners, families

Australia’s banks are introducing new ways to help customers experiencing economic abuse at the hands of their partners and family.

Exclusive: Australia’s banks have launched new guidelines to better support customers experiencing economic abuse.

The move comes amid increasing concern in Australia about the number of women being financially abused by controlling partners exercising coercive control over them. All state and territory governments are now mulling new family violence laws which would specifically criminalise the act of coercive control.

A bipartisan House of Representatives committee on Thursday also recommended measures be introduced to tackle coercive control and technology-facilitated abuse.

The Australian Banking Association’s guidelines make it easier for customers suffering economic abuse to establish or regain control of their own finances, and to have safe and confidential dealings with their banks.

This includes better training for staff to recognise when a person might be suffering economic abuse, identifying suspicious transactions, and stopping abusive messages being left by perpetrators during online transactions.

The ABA’s chief executive Anna Bligh said economic abuse was a form of domestic violence.

“It can be an enabler for partners to keep women trapped in abusive and often dangerous relationships,” Ms Bligh said.

“It’s also used against the elderly. Elder abuse can take many forms; coercing someone to sign, forging signatures, withholding access to money.”

Australian Banking Association CEO Anna Bligh in Sydney in 2020. (AAP Image/Paul Braven)

The guidelines are the first major update of the way banks respond to family and domestic violence victims, and those suffering elder abuse, in several years, and will cover the 21 members of the Australian Banking Association, who between them have 20 million customers.

Ms Bligh said the new guidelines reflected the uptake of digital banking. They also recognised that financial abuse increased in times of major crises such as the COVID-19 pandemic, pandemic, droughts, floods and bushfires.

“Anyone experiencing financial abuse should talk to their bank. They are ready to help,’’ Ms Bligh said.

Banks will be able to help customers experiencing economic abuse to open bank accounts using alternative identification documentation, give them advice about account settings, and refer customers to external support service where appropriate.

Other requirements will ensure banks do not agree to new loans or increased loans without first being satisfied the co-borrower understands the risks associated with it, to prevent customers being bullied or forced into taking on debt for their abusers.

The guidelines note: “the difficulty of obtaining financial independence is often the most significant barrier to leaving a family and domestic violence relationship, and a lack of financial independence often results in a person returning to that relationship.’’

It says financial abuse includes controlling behaviour that denies a person access to finances, bank accounts and financial records or the ability to work, study or access benefits, withholding or threatening to withhold financial support necessary for the maintenance of a partner and/or dependent child, or preventing a person from being involved in decisions about household expenditure or disposal of jointly-owned property.

It also includes coercing a person to relinquish control over assets, take out a loan, credit card, or guarantee a loan in their name for the benefit of the controlling partner.

If you need help immediately please call:

*National Sexual Assault, Domestic Violence Counselling Service 1800 RESPECT on 1800 737 732

*24-hour Emergency Accommodation helpline on 1800 800 588

*Safe At Home helpline on 1800 633 937

*Family Violence Crisis and Support Service on 1800 608 122

*Bravehearts – Sexual Assault Support for Children on 1800 BRAVE 1

*Men’s Referral Service on 1300 766 491 or Don’t Become That Man on 1300 243 413

*Lifeline on 13 11 14