Preventing And Responding To Family And Domestic Violence In Banking.pdf

Family and domestic violence is a whole community issue requiring collective efforts from government, communities, and the corporate sector, including banks. This industry guideline explains that financial abuse is a form of family and domestic violence, outlines how it can affect a bank's relationship with customers, and provides a framework for banks to support customers affected by family and domestic violence. The guideline reflects good industry practice and encourages banks to use its principles to develop internal processes, procedures, and policies.

The Banking Code of Practice sets standards for the Australian banking industry, including taking extra care with vulnerable customers, such as those experiencing family or domestic violence. This includes training staff to be sensitive, respectful, and compassionate, working with customers to find suitable banking solutions, and making referrals to external support where necessary.

Other Banking Code requirements relevant to family and domestic violence include not approving loans or increases where the co-borrower does not receive a substantial benefit, ending liability for as-yet-to-be-drawn loan amounts in certain circumstances, and protecting guarantors by limiting liability and requiring certain information.

The ABA has developed two guides relating to financial abuse, including one focusing on family and domestic violence, particularly intimate partner abuse. The new aspects of this guidance should be implemented within 12 months of release, while matters carried forward from the previous guidance should already be implemented.

Family and domestic violence has devastating consequences for individuals, families, and communities, including a major impact on financial security and wellbeing. Over 2 million Australians have experienced physical or sexual violence from a current or previous cohabitating partner since the age of 15, with women three times more likely than men to experience violence from a current or former cohabiting partner.

Financial abuse is a form of family violence that negatively impacts a person financially and undermines their efforts to become economically independent. It is about power, control, and manipulation of an individual, often occurring with other forms of violence, including physical violence, intimidation, and controlling behavior. Financial abuse is generally long-term and may continue after an individual has left an abusive partner.