A risk-based approach to customers you assess to be higher risk

This document discourages financial institutions from indiscriminately closing accounts across entire sectors due to perceived higher risk, emphasizing that such 'debanking' can harm legitimate businesses and increase financial crime risks. It requires financial institutions to assess each customer individually, considering their business model, services, jurisdictions, and expected activities, rather than applying blanket policies to entire industries. A higher risk rating does not mandate declining a business relationship, as risks can be managed through proportionate controls like enhanced customer due diligence and transaction monitoring, and institutions must document reasons for declining or discontinuing services. Financial institutions must also regularly review and update customer risk assessments and know-your-customer information at a frequency appropriate to the money laundering and terrorism financing risk.

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Published date

30 September 2026

Managing money laundering and terrorism financing (ML/TF) risk doesn’t mean avoiding risk altogether.

Debanking, also known as derisking, can have a devastating impact on legitimate businesses. It may also increase financial crime risks by reducing transparency or pushing activity into less regulated channels.

We discourage the indiscriminate or widespread closure of accounts across entire sectors.

Who debanking impacts

Debanking occurs when a financial institution declines, withdraws or limits banking services to customers in specific industries that they consider to be higher risk.

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Source: Australian Transaction Reports and Analysis Centre — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works