Debanking

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Debanking (sometimes spelled de-banking, and also known within the banking industry as de-risking) is the closure of people's or organizations' bank accounts by banks that perceive the account holders to pose a financial, legal, regulatory, or reputational risk to the bank.

Examples of this include the enforcement of anti-corruption and anti–money laundering laws, the closing of bank accounts of sex workers,[1] and people considered to be politically exposed persons.[2]

The closure of accounts is generally performed without giving a reason and without the prospect of appeal. De-banking can have severe consequences for individuals, as it cuts them off from many activities in society.

By country

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Australia

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In September 2020, ANZ was accused of discrimination by Australian cryptocurrency exchanger Allan Flynn before the ACT Civil and Administrative Tribunal. The dispute is the first human rights action brought by a Bitcoin trader against a bank alleging discrimination on the basis of Flynn's "profession, trade, occupation, or calling" in violation of the Australian Capital Territory's anti-discrimination legislation.[3] Flynn alleges ANZ denied him banking services on the basis of his occupation as a cryptocurrency exchanger by closing his and his brother's bank accounts and contacting another bank about his Bitcoin trading, allegedly causing the other bank to similarly deny him service.[4] Interlocutory orders were made by the Tribunal in June 2021.[5] The matter between Flynn and the bank was settled in October 2021 with ANZ admitting in a statement that it had de-banked Flynn because he operated Bitcoin trading service, and that it could (subject to their defences) amount to discrimination, but that they believed doing so was necessary to mitigate exposure to regulatory risk.[6] Flynn maintains, despite the settlement requiring him to withdraw the action, that ANZ's actions were unlawful.[7]

In 2024 a gay sex worker in Melbourne won his discrimination case against two financial service providers for closing his accounts in 2021 due to prejudice against his occupation. [8]

Canada

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In response to the Canada convoy protest of 2022, at least 76 bank accounts linked to the protests totaling CA$3.2 million were frozen under the Emergencies Act.[9] This sparked controversy, eventually leading to a court ruling that the freezing was unconstitutional. An appeal is underway as of 2024. [10]

United Kingdom

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Following the Nigel Farage Coutts bank scandal in 2023, in which Coutts & Co. removed politician and broadcaster Nigel Farage as a client, the UK Government launched an investigation of de-banking practices within the UK banking industry.[11] The Financial Conduct Authority reported that banks in the UK were closing nearly one thousand accounts daily, with just over 343,000 closed in 2022, compared to about 45,000 in 2017.[12]

In September 2023, the FCA announced that it had found that banks had not been closing customers' accounts for political reasons. There had been four accounts that the FCA investigated for potentially having been closed for political reasons, but it found that the reason had actually been for the way the individuals had behaved towards the staff of the respective banks. Nigel Farage dubbed the outcome 'farcical'.[13]

Accusations of disproportionate de-banking of British Muslims have also resulted in calls for political scrutiny.[14] The British Nigerian community has been reportedly affected as well.[15] Poole-born Alexandra Tolstoy suspected that her account might have been closed by NatWest due to her Russian name.[16][17] Baz Melia MBE accused NatWest of destroying his business by closing his and his family's accounts, which he suspected had happened because of a connection with a Saudi-based business partner.[18] Examples of companies being de-banked for trading with Ukraine were reported by British Ukrainian business groups.[19]

United States

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Following the 2012 Colorado Amendment 64 which legalized recreational Cannabis at the state level, many legally operating dispensaries had their bank accounts closed as financial institutions faced pressure and potential penalties from federal regulators, due to cannabis remaining illegal under federal law.[20]

The term has gained traction after being discussed on a November 2024 The Joe Rogan Experience podcast with investor Marc Andreessen, in particular with respect to cryptocurrency assets. [21]

Multiple instances of U.S. and Canadian banks reportedly dropping Muslim clients on questionable grounds have been covered in the media.[22] Nicholas Fuentes, a far-right commentator, has frequently expressed his frustrations of being de-banked.[23]

In August 2025, President Trump issued an executive order to require that the banking industry ensure it does not debank anyone based on their political or religious beliefs.[24]

See also

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References

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  1. ^ Gausden, Grace (2023-07-30). "'No one's account stays open for long': The rise of sex industry workers being de-banked". inews.co.uk. Retrieved 2023-08-01.
  2. ^ Martini, Maíra (28 June 2023). "On politically exposed persons, de-risking and the fight against…". Transparency.org. Retrieved 2023-08-01.
  3. ^ Discrimination Act 1991 (ACT), ss. 7(p) and 57N.
  4. ^ Danckert, Sarah (24 September 2021). "Bitcoin trader takes banks to court over cryptocurrency 'discrimination'". Sydney Morning Herald. Archived from the original on 23 September 2021. Retrieved 4 October 2021.
  5. ^ ACT Civil and Administrative Tribunal. "FLYNN v AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED ACN 005 357 522 (Discrimination) [2021] ACAT 50" (PDF). ACAT. Archived (PDF) from the original on 5 July 2021.
  6. ^ Danckert, Sarah (2021-10-14). "ANZ settles debanking case brought by bitcoin trader". The Sydney Morning Herald. Retrieved 2021-11-12.
  7. ^ "Allan Flynn on LinkedIn: #bitcoin". www.linkedin.com. Retrieved 2021-11-12.
  8. ^ Cam, Emma. "Melbourne sex worker wins 'debanking' case against two Australian financial institutions". Retrieved 31 August 2025.
  9. ^ "Canada protests: Police push back demonstrators in Ottawa". BBC News. 19 February 2022. Retrieved 2024-01-28.
  10. ^ Olson, Walter. "Canadian Court: Trudeau's Use of Emergency Powers to Crush Protests Was Illegal". www.cato.org. Retrieved 2025-08-07.
  11. ^ Venkataramakrishnan, Siddharth; Gross, Anna (2023-07-23). "Treasury to summon bank chiefs to address 'de-banking' after Farage furore". Financial Times. Retrieved 2023-08-01.
  12. ^ Gani, Aisha S (16 August 2023). "British Muslims Say Banks Ruin Lives With Debanking Policies". Bloomberg.com.
  13. ^ Dorrell, Chris (2023-09-19). "Banks not closing accounts due to political views, FCA finds". CityAM. Retrieved 2023-09-19.
  14. ^ Scott, Jennifer (1 August 2023). "Banks accused of closing accounts belonging to British Muslims". Sky News. Retrieved 2023-08-01.
  15. ^ Chowdhury, Sadiya; Hasnath, Mustakim (6 August 2023). "Unlawful 'de-banking' to be investigated - as specific communities warn of being disproportionately affected". Sky News.
  16. ^ Bourne, Alice (5 July 2023). "'I don't know if it's because I have a Russian name': British aristocrat says her bank account was unexplainably closed". LBC.
  17. ^ Johnston, Neil (4 July 2023). "Alexandra Tolstoy: 'NatWest closed my accounts, but never told me why'". The Telegraph. Archived from the original on 4 July 2023.
  18. ^ Mendick, Robert (27 July 2023). "Decorated colonel faces ruin after NatWest shut accounts over Saudi links". The Telegraph. Archived from the original on 27 July 2023.
  19. ^ Whale, Sebastian (15 August 2023). "UK banks shun companies trading with Ukraine". POLITICO.
  20. ^ Mandelbaum, Robb. "Where Pot Entrepreneurs Go When the Banks Just Say No". Retrieved 31 August 2025.
  21. ^ "How tech's right-wing elite made 'debanking' claims into a political rallying point". NBC News. 2024-12-10. Retrieved 2024-12-27.
  22. ^ Emon, Anver M. (2023). "12. Moving Muslim Money". Systemic Islamophobia in Canada: A Research Agenda. University of Toronto Press. ISBN 9781487549138.
  23. ^ Fuentes, Nicholas J. (2025-07-15). CANDACE HIT JOB FOILED??? Black Karen SHUT DOWN After Incel Stands On Business | America First Ep. 1532 (Podcast). Retrieved 2025-08-07 – via Rumble.
  24. ^ "Trump targets banks with order barring discriminatory 'debanking'". CNBC. 2025-08-07. Retrieved 2025-08-10.

Further reading

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