Debanking (sometimes spelledde-banking, and also known within the banking industry asde-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 ofanti-corruption andanti–money laundering laws, anti-terrorism efforts,[1] and the closing of bank accounts ofsex workers[2] or people violatingimmigration laws[3] or considered to bepolitically exposed.[4]
Debanking has been criticized for limited legal clarity[5] and financial exclusion.[6] It can have severe consequences for individuals, as it cuts them off from various activities within society.
In September 2020,ANZ was accused of discrimination by the Australiancryptocurrency exchanger Allan Flynn before theACT Civil and Administrative Tribunal. The dispute was the first human rights action brought by abitcoin 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.[7] Flynn alleged that 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.[8][9] The matter between Flynn and the bank was settled in October 2021, with ANZ admitting in a statement that it had debanked Flynn because he operated a bitcoin trading service, and that this could (subject to their defences) amount to discrimination, but that they believed doing so was necessary to mitigate exposure to regulatory risk.[10] Flynn has maintained, despite the settlement requiring him to withdraw the action, that ANZ's actions were unlawful.[11]
In 2024, a gay sex worker inMelbourne won his discrimination case against two financial service providers for closing his accounts in 2021 due to prejudice against his occupation.[12]
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In response to theCanada convoy protest of 2022, at least 76 bank accounts linked to the protests, totaling CA$3.2 million, were frozen under theEmergencies Act.[13] This sparked controversy, eventually leading to a court ruling that the freezing was unconstitutional. An appeal was underway as of 2024.[14]
Following theNigel Farage Coutts bank scandal in 2023, in whichCoutts & Co. removed politician and broadcasterNigel Farage as a client, the UK government launched an investigation of debanking practices within the country's banking industry.[15] TheFinancial 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.[16]
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 the way the individuals had behaved towards the staff of the respective banks. Farage dubbed the outcome 'farcical'.[17]
Accusations of disproportionate debanking ofBritish Muslims have also resulted in calls for political scrutiny.[18][19] TheBritish Nigerian community has been reportedly affected as well.[20]Poole-bornAlexandra Tolstoy suspected that her account might have been closed byNatWest due to her Russian name.[21][22] Baz MeliaMBE 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.[23] Examples of companies being debanked for trading withUkraine have been reported by British Ukrainian business groups.[24]
Following the2012 Colorado Amendment 64, which legalized recreationalcannabis 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 underfederal law.[25]
The term has gained traction after being discussed on a November 2024Joe Rogan Experience podcast episode with investorMarc Andreessen, in particular with respect to cryptocurrency assets.[26]
Multiple instances of U.S. and Canadian banks reportedly dropping Muslim clients on questionable grounds have been covered in the media.[27]
In August 2025,President Trump issued an executive order requiring that the banking industry ensure it does not debank anyone based on their political or religious beliefs.[28] In September, regulators from theFederal Deposit Insurance Corporation and theOffice of the Comptroller of the Currency sent written demands to large banks, seeking information going back years concerning any instance of debanking people based on political or religious grounds.[29]
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