{{Short description|Forced closure of a bank account by a bank}} {{Use dmy dates|date=April 2026}}
'''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, anti-terrorism efforts,<ref>{{cite web|title=Access denied: why Muslims worldwide are being 'debanked' |url=https://www.theguardian.com/world/2026/jan/27/muslims-being-debanked-banking-services-9-11-september |website=theguardian.com |date=27 January 2026 |access-date=27 January 2026}}</ref> and the closing of bank accounts of sex workers<ref>{{Cite web |last=Gausden |first=Grace |date=30 July 2023 |title='No one's account stays open for long': The rise of sex industry workers being de-banked |url=https://inews.co.uk/inews-lifestyle/money/saving-and-banking/bank-account-stays-open-long-rise-sex-workers-de-banked-2509654 |access-date=1 August 2023 |website=inews.co.uk}}</ref> or people violating immigration laws<ref name="x910">{{cite web | last=Gentleman | first=Amelia | title=People suspected of living illegally in UK to have bank accounts closed | website=The Guardian | date=2023 | url=https://www.theguardian.com/uk-news/2023/apr/06/people-suspected-of-living-illegally-in-uk-to-have-bank-accounts-closed | access-date=7 February 2026}}</ref> or considered to be politically exposed.<ref>{{Cite web |last=Martini |first=Maíra |date=28 June 2023 |title=On politically exposed persons, de-risking and the fight against... |url=https://www.transparency.org/en/blog/politically-exposed-persons-banks-derisking-fight-corruption |access-date=1 August 2023 |website=Transparency.org}}</ref>
Debanking has been criticized for limited legal clarity<ref>{{Citation |last=Styles |first=Megan |title=De-banking 'Risky' Customers: Contractual Exclusion of Customers by Financial Institutions and AML/CTF Ramifications |date=2025 |work=Combating Financial Crime: Intended and Unintended Consequences |pages=271–294 |editor-last=Goldbarsht |editor-first=Doron |url=https://doi.org/10.1007/978-3-032-06858-3_10 |access-date=7 February 2026 |place=Cham |publisher=Springer Nature Switzerland |doi=10.1007/978-3-032-06858-3_10 |isbn=978-3-032-06858-3 |editor2-last=de Koker |editor2-first=Louis |editor3-last=Ferrill |editor3-first=Jamie|url-access=subscription }}</ref> and financial exclusion.<ref>{{Cite journal |last=Dahdal |first=Andrew |date=2024 |title=Immigrants and innovators: financial inclusion and the 'de-banking' of the digital asset industry |url=https://www.tandfonline.com/doi/full/10.1080/17579961.2024.2392939 |journal=Law, Innovation and Technology |volume=16 |issue=2 |pages=599–630 |doi=10.1080/17579961.2024.2392939 |issn=1757-9961|url-access=subscription }}</ref> It can have severe consequences for individuals, as it cuts them off from various activities within society.
==By country== ===Australia=== In September 2020, ANZ was accused of discrimination by the Australian cryptocurrency exchanger Allan Flynn before the ACT Civil and Administrative Tribunal. The dispute was 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.<ref>''[http://www8.austlii.edu.au/cgi-bin/viewdb/au/legis/act/consol_act/da1991164/ Discrimination Act 1991]'' (ACT), ss. 7(p) and 57N.</ref> 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.<ref>{{Cite web|last=Danckert|first=Sarah|date=24 September 2021|title=Bitcoin trader takes banks to court over cryptocurrency 'discrimination'|url=https://www.smh.com.au/business/banking-and-finance/bitcoin-trader-takes-banks-to-court-over-cryptocurrency-discrimination-20210923-p58u38.html|url-status=live|archive-url=https://web.archive.org/web/20210923192020/https://www.smh.com.au/business/banking-and-finance/bitcoin-trader-takes-banks-to-court-over-cryptocurrency-discrimination-20210923-p58u38.html|archive-date=23 September 2021|access-date=4 October 2021|website=Sydney Morning Herald}}</ref><ref>{{Cite web|last=ACT Civil and Administrative Tribunal|title=Flynn v Australia and New Zealand Banking Group Limited ACN 005 357 522 (Discrimination) [2021] ACAT 50|url=https://www.acat.act.gov.au/__data/assets/pdf_file/0010/1778140/FLYNN-v-AUSTRALIA-AND-NEW-ZEALAND-BANKING-GROUP-LIMITED-ACN-005-357-522-Discrimination-2021-ACAT-50.pdf|url-status=live|website=ACAT|archive-url=https://web.archive.org/web/20210705054953/https://www.acat.act.gov.au/__data/assets/pdf_file/0010/1778140/FLYNN-v-AUSTRALIA-AND-NEW-ZEALAND-BANKING-GROUP-LIMITED-ACN-005-357-522-Discrimination-2021-ACAT-50.pdf |archive-date=5 July 2021 }}</ref> 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.<ref>{{Cite web|last=Danckert|first=Sarah|date=14 October 2021|title=ANZ settles debanking case brought by bitcoin trader|url=https://www.smh.com.au/business/banking-and-finance/anz-settles-debanking-case-brought-by-bitcoin-trader-20211014-p59009.html|access-date=12 November 2021|website=The Sydney Morning Herald}}</ref> Flynn has maintained, despite the settlement requiring him to withdraw the action, that ANZ's actions were unlawful.<ref>{{Cite web|title=Allan Flynn on LinkedIn: #bitcoin|url=https://www.linkedin.com/posts/allan-flynn-882a94a5_bitcoin-activity-6854603186515398656-VfFP|access-date=12 November 2021|website=linkedin.com}}</ref>
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.<ref>{{cite news |last1=Cam |first1=Emma |title=Melbourne sex worker wins 'debanking' case against two Australian financial institutions |url=https://www.news.com.au/finance/business/other-industries/melbourne-sex-worker-wins-debanking-case-against-two-australian-financial-institutions/news-story/c055907df3dd9626d97d31b40fab500f |access-date=31 August 2025}}</ref>
===Canada=== {{Update|section|date=January 2026}}
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.<ref>{{Cite news |date=19 February 2022 |title=Canada protests: Police push back demonstrators in Ottawa |url=https://www.bbc.com/news/world-us-canada-60420469 |access-date=28 January 2024 |work=BBC News |archive-date=11 April 2023 |archive-url=https://web.archive.org/web/20230411231719/https://www.bbc.com/news/world-us-canada-60420469 |url-status=live }}</ref> This sparked controversy, eventually leading to a court ruling that the freezing was unconstitutional. An appeal was underway as of 2024.<ref>{{Cite web |last=Olson |first=Walter |title=Canadian Court: Trudeau's Use of Emergency Powers to Crush Protests Was Illegal |url=https://www.cato.org/blog/canadian-court-trudeaus-use-emergency-powers-crush-protests-was-illegal |access-date=7 August 2025 |website=cato.org |archive-date=4 August 2025 |archive-url=https://web.archive.org/web/20250804133854/https://www.cato.org/blog/canadian-court-trudeaus-use-emergency-powers-crush-protests-was-illegal |url-status=live }}</ref>
===United Kingdom=== 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 debanking practices within the country's banking industry.<ref>{{Cite news |last1=Venkataramakrishnan |first1=Siddharth |last2=Gross |first2=Anna |date=23 July 2023 |title=Treasury to summon bank chiefs to address 'de-banking' after Farage furore |work=Financial Times |url=https://www.ft.com/content/ea05c9f2-52c5-405d-9af4-b4cb66b6f157 |access-date=1 August 2023 |archive-date=1 August 2023 |archive-url=https://web.archive.org/web/20230801145803/https://www.ft.com/content/ea05c9f2-52c5-405d-9af4-b4cb66b6f157 |url-status=live }}</ref> 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.<ref>{{cite web |last1=Gani |first1=Aisha S |title=British Muslims Say Banks Ruin Lives with Debanking Policies |url=https://www.bloomberg.com/news/features/2023-08-16/british-muslims-say-banks-ruin-lives-with-debanking-policies |website=Bloomberg.com |date=16 August 2023}}</ref>
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'.<ref>{{Cite web |last=Dorrell |first=Chris |date=19 September 2023 |title=Banks not closing accounts due to political views, FCA finds |url=https://www.cityam.com/banks-not-closing-accounts-due-to-political-views-fca-finds/ |access-date=19 September 2023 |website=CityAM}}</ref>
Accusations of disproportionate debanking of British Muslims have also resulted in calls for political scrutiny.<ref>{{Cite web |last=Scott |first=Jennifer |date=1 August 2023 |title=Banks accused of closing accounts belonging to British Muslims |url=https://news.sky.com/story/banks-accused-of-closing-accounts-belonging-to-british-muslims-12931725 |access-date=1 August 2023 |website=Sky News}}</ref><ref name="guardian">{{Cite news |last=Bullough |first=Oliver |date=27 January 2026 |title=Access denied: why Muslims worldwide are being 'debanked' |url=https://www.theguardian.com/world/2026/jan/27/muslims-being-debanked-banking-services-9-11-september |access-date=15 April 2026 |work=The Guardian |issn=0261-3077}}</ref> The British Nigerian community has been reportedly affected as well.<ref>{{cite web |author1=Chowdhury, Sadiya |author2=Hasnath, Mustakim |title=Unlawful 'de-banking' to be investigated – as specific communities warn of being disproportionately affected |url=https://news.sky.com/story/unlawful-de-banking-to-be-investigated-as-specific-communities-warn-of-being-disproportionately-affected-12934601 |website=Sky News |date=6 August 2023}}</ref> Poole-born Alexandra Tolstoy suspected that her account might have been closed by NatWest due to her Russian name.<ref>{{cite web |last1=Bourne |first1=Alice |title='I don't know if it's because I have a Russian name': British aristocrat says her bank account was unexplainably closed |url=https://www.lbc.co.uk/radio/presenters/nick-ferrari/british-aristocrat-says-bank-account-closed-unexpectedly/ |website=LBC |date=5 July 2023 |access-date=9 August 2023 |archive-date=24 September 2023 |archive-url=https://web.archive.org/web/20230924112553/https://www.lbc.co.uk/radio/presenters/nick-ferrari/british-aristocrat-says-bank-account-closed-unexpectedly/ |url-status=live }}</ref><ref>{{cite web |last1=Johnston |first1=Neil |title=Alexandra Tolstoy: 'NatWest closed my accounts, but never told me why' |url=https://www.telegraph.co.uk/politics/2023/07/04/alexandra-tolstoy-natwest-closed-bank-accounts-no-reason/ |website=The Telegraph |archive-url=https://archive.today/20230704193331/https://www.telegraph.co.uk/politics/2023/07/04/alexandra-tolstoy-natwest-closed-bank-accounts-no-reason/ |archive-date=4 July 2023 |date=4 July 2023 |url-status=live}}</ref> 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.<ref>{{cite web |last1=Mendick |first1=Robert |title=Decorated colonel faces ruin after NatWest shut accounts over Saudi links |url=https://www.telegraph.co.uk/news/2023/07/27/baz-melia-mbe-colonel-natwest-accounts-closed-middle-east/ |website=The Telegraph |archive-url=https://archive.today/20230727194608/https://www.telegraph.co.uk/news/2023/07/27/baz-melia-mbe-colonel-natwest-accounts-closed-middle-east/ |archive-date=27 July 2023 |date=27 July 2023 |url-status=live |url-access=subscription}}</ref> Examples of companies being debanked for trading with Ukraine have been reported by British Ukrainian business groups.<ref>{{cite web |last1=Whale |first1=Sebastian |title=UK banks shun companies trading with Ukraine |url=https://www.politico.eu/article/uk-bank-close-accounts-british-smes-trading-with-ukraine/ |website=POLITICO |date=15 August 2023 |access-date=16 August 2023 |archive-date=16 August 2023 |archive-url=https://web.archive.org/web/20230816150603/https://www.politico.eu/article/uk-bank-close-accounts-british-smes-trading-with-ukraine/ |url-status=live }}</ref>
===United States=== 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.<ref>{{cite news |last1=Mandelbaum |first1=Robb |title=Where Pot Entrepreneurs Go When the Banks Just Say No |url=https://www.nytimes.com/2018/01/04/magazine/where-pot-entrepreneurs-go-when-the-banks-just-say-no.html |access-date=31 August 2025 |archive-date=18 June 2025 |archive-url=https://web.archive.org/web/20250618051051/https://www.nytimes.com/2018/01/04/magazine/where-pot-entrepreneurs-go-when-the-banks-just-say-no.html |url-status=live }}</ref>
The term has gained traction after being discussed on a November 2024 ''Joe Rogan Experience'' podcast episode with investor Marc Andreessen, in particular with respect to cryptocurrency assets.<ref>{{Cite web |date=10 December 2024 |title=How tech's right-wing elite made 'debanking' claims into a political rallying point |url=https://www.nbcnews.com/tech/internet/debanking-what-is-meaning-crypto-musk-rogan-andreessen-rcna182597 |access-date=27 December 2024 |website=NBC News |archive-date=27 December 2024 |archive-url=https://web.archive.org/web/20241227215557/https://www.nbcnews.com/tech/internet/debanking-what-is-meaning-crypto-musk-rogan-andreessen-rcna182597 |url-status=live }}</ref>
Multiple instances of U.S. and Canadian banks reportedly dropping Muslim clients on questionable grounds have been covered in the media.<ref>{{cite book |last1=Emon |first1=Anver M. |title=Systemic Islamophobia in Canada: A Research Agenda |date=2023 |publisher=University of Toronto Press |chapter=12. Moving Muslim Money |isbn=9781487549138 |chapter-url=https://books.google.com/books?id=oQC9EAAAQBAJ&dq=canada+debanking&pg=PT111}}</ref>
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.<ref>{{Cite web |date=7 August 2025 |title=Trump targets banks with order barring discriminatory 'debanking' |url=https://www.cnbc.com/2025/08/07/trump-targets-banks-with-order-barring-discriminatory-debanking.html |access-date=10 August 2025 |website=CNBC |archive-date=9 August 2025 |archive-url=https://web.archive.org/web/20250809085135/https://www.cnbc.com/2025/08/07/trump-targets-banks-with-order-barring-discriminatory-debanking.html |url-status=live }}</ref> In September, regulators from the Federal Deposit Insurance Corporation and the Office 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.<ref>{{Cite web |last=Tokar |first=Gina Heeb, AnnaMaria Andriotis and Dylan |date=26 September 2025 |title=Exclusive {{!}} Banks Ordered to Dig Through Account Closures to Find 'Debanking' Cases |url=https://www.wsj.com/finance/regulation/banks-ordered-to-dig-through-account-closures-to-find-debanking-cases-5531b993 |access-date=27 September 2025 |website=The Wall Street Journal |archive-date=26 September 2025 |archive-url=https://web.archive.org/web/20250926224126/https://www.wsj.com/finance/regulation/banks-ordered-to-dig-through-account-closures-to-find-debanking-cases-5531b993 |url-status=live }}</ref>
==See also== * Deplatforming * Financial censorship * Know your customer * Unbanked * Underbanked * Operation Choke Point
==References== {{reflist}}
==Further reading== * {{cite web |author1=Durdner, Tracey |author2=Shetret, Liat |title=Understanding Bank De-Risking and Its Effects on Financial Inclusion |url=https://www-cdn.oxfam.org/s3fs-public/file_attachments/rr-bank-de-risking-181115-en_0.pdf |website=Global Center on Cooperative Security |publisher=Oxfam |date=November 2015}}
{{Censorship}} Category:Banking Category:Banking terms Category:Risk management