Michelle Rowland (Greenway, Australian Labor Party, Shadow Assistant Minister for Communications) Share this | Link to this | Hansard source

I wish to raise a matter of great concern to many migrant communities around the country: the decision by Australian banks to close the bank accounts of remittance companies. Remittance services play a vital role in many migrant communities in Australia. Indeed, they are the lifeblood of many communities right around the world. In Australia's rich multicultural community, many migrants rely on remittance services to be able to transfer funds to their families living overseas. Remittance businesses provide much-needed services to the community, offering low-cost, efficient and secure transfers to developing and underprivileged countries which in many cases do not have established banking networks or modern forms of electronic funds transfer capabilities. Remittance services are in many cases the only way for many communities to support their families still living in their country of origin. As someone of Fijian heritage, I am acutely aware of the importance of remittances for emerging economies and economic security.

In recent times, though, major banks around Australia have determined to close the bank accounts of these remittance companies. This has created an immense practical barrier for many people in Australia who wish to provide for their loved ones overseas. I note that, during the recent visit to Australia by Indian Prime Minister Modi, he stressed in his Sydney address the importance of Australia's Indian community giving funds to improve their village of birth. This is a similar theme for many who have come to make Australia home.

According to banks, their decision to close such accounts has been made in part for national security and money laundering related reasons, which are justifiable. But I do not believe a blanket closure of all accounts is either justified or a proportionate response. I welcome the statement by Australia's anti-money-laundering and counter-terrorism-financing regulator, the Australian Transaction Reports and Analysis Centre, or AUSTRAC, on 25 November, which states:

AUSTRAC encourages banks to continue to assess the particular risks relating to their customers in line with the risk-based approach. Further, AUSTRAC encourages banks to engage with alternative remitters on measures that the sector could take both immediately and in the longer term to meet banks' internal risk standards.

AUSTRAC will continue to work with alternative remitters and banks in conjunction with other Government agencies to address the complex set of issues underlying this problem.

One of the last remaining banks to keep open these accounts, Westpac, has recently made the decision to close these accounts. This has caused great anxiety in the community, including in the Somalian and Eritrean communities in Melbourne and the Pakistani and Filipino communities in Sydney. I welcome the shadow finance minister's decision to make a formal request to the finance minister asking that the government take action on this. It is vital that these communities find a way for remittance services to be resumed. There are occasions when specific transactions can and should be stopped for national security reasons, but to stop all remittance services in the manner that has occurred is, as I said, a disproportionate response and prevents many Australians from providing vital assistance to their family members, who are in many cases completely reliant on the finances received via remittance services.

I wish to note the strong advocacy on this issue by the state member for Melbourne, Ms Jennifer Kanis MLA, who has been engaging with affected communities and working to ensure a positive outcome for all involved. As the shadow minister for finance told the parliament yesterday:

It is within the grasp and the gift of the government to work with the banks and have this issue fixed.

I wholeheartedly support this statement and give this commitment to provide every support I can to have this issue remedied. I urge Australian banks to take note of the deep community concern on this matter and to act accordingly.