Commonwealth Bank latest to reject firearms industry
Another small business has been knocked back from one of the big four banks, for being part of the firearms industry.
A NSW gunsmith has been refused service by the Commonwealth Bank, solely for being part of the firearms industry.
Dan Shaw this week applied for a new merchant account with the bank – but was yesterday knocked back, despite being a lifelong customer and still having his personal and business accounts with CBA.
“I got a call the next day saying, ‘we can’t offer services to you because you’re in the firearms industry’,” Mr Shaw said.
“I find it unbelievably discriminatory – we’re fully licensed, we’re fully insured, we don’t deal with just anyone off the street.
“When the bank I’ve dealt with my whole life won’t deal with me, I just find it disgusting.”
Mr Shaw’s is the latest case of financial institutions – including the big four banks – cutting ties with the sector, claiming it is too risky to service as it could be linked with criminal activity.
The Weekly Times last week revealed National Australia Bank had advised two Queensland customers – a gun shop in Boonah and ammunitions manufacturer in Ipswich – their accounts would be closed in 45 days, because they were in the firearms industry.
The Weekly Times is aware of a number of other cases, while incensed farmers and shooters are threatening to take their banking elsewhere.
CBA has been contacted for comment.
Shooting Industry Foundation of Australia spokeswoman Laura Patterson said it appeared banks were targeting “small businesses they think won’t be organised enough to fight back”.
“These are not members of a massive corporate entity, they are mum and dad businesses and they have an incredible burden of regulatory responsibility,” she said.
Mr Shaw owns and runs Shawmac Industries Australia, a licensed prohibited weapon manufacturer and gunsmith in Nowra.
His accounts are all with CBA, and was seeking to return to CBA for its payment systems, after his previous provider SquareUp closed his account also due to being associated with firearms.
Mr Shaw said he went through the application with a local branch manager with no issues flagged, but received the call rejecting him the next day.
With all his other banking still with CBA, Mr Shaw is concerned where it will end.
“The next worry is are they going to tell us to close our personal account or business account now, if our income comes from firearms?” he said.
“The firearms industry is already unbelievably difficult to survive in, it won’t take much to say it won’t continue.
“We only just survive on a very slim line, and we won’t need further complications on something as trivial as this – it’s quite offensive really.”
A CBA spokeswoman previously stated that customers are dealt with case-by-case, based on environmental, social and governance considerations.
“In some cases, we may form a view that we no longer wish to continue a banking relationship with a customer based on risk factors,” she said.
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