Allan Flynn has reached a deal with ANZ over his debanking and is going to the tribunal next week to take on Westpac. Allan Flynn has resolved his first lawsuit against the Australia and New Zealand Banking Group (ANZ) for being debanked unilaterally in 2018 owing to his employment as a Digital Currency Exchange (DCE).
The settlement comes more than two years after the Canberra resident filed charges against ANZ with the ACT Civil and Administrative Tribunal.
The ANZ said in the settlement that it blocked his accounts owing to a perceived risk of money laundering and terrorist financing (ML/TF) among exchanges. Additionally, it recognised that unbanking Flynn may have constituted “illegal discrimination in violation of sections 7(1)(p) and 20 of the Discrimination Act 1991.”
ANZ, on the other hand, disputed responsibility, claiming that if it had “discriminated against Mr. Flynn by shutting his accounts, the discrimination was fair under the circumstances and therefore legal.”
The ANZ statement also acknowledged that it terminated his account without contacting Flynn for further information regarding his actions. Flynn claims that such discrimination is illegal under Canberra legislation, which states: “It is prohibited for someone to discriminate against you on the basis of your profession, trade, vocation, or calling.”
Although this initial fight is finished, he will bring a second case against Westpac bank before the tribunal next Thursday. Westpac cancelled his bank account in 2019 claiming the same money laundering/terrorism financing concerns associated with his being a crypto dealer.
According to Flynn, the case is significant because it will be the first time banks are required to state categorically whether they would service Bitcoin dealers. “All I’m asking is for a fair chance,” he said.
Flynn intends to accuse banks of violating human rights by discriminating against him and his profession. He believes that this is the better course of action than advocating for more regulation and expects that a victory would result in policy reforms on a national, if not worldwide, scale. “A victory against the banks may have broader ramifications for occupational discrimination.”
He said that although the Tribunal’s decision would be closely scrutinised by the public, a settlement reached in advance may assist alter policy as a result of a partial admission of guilt. He is concerned, though, that a loss may result in more Bitcoin users being unbanked.
His is far from an isolated instance. Just last month, Rebecca Schot-Guppy, CEO of Fintech Australia, testified before the Senate that up to 91 members of her organisation had been debanked with no apparent reason or recourse.
Since 2015, AUSTRAC has established more detailed rules governing how DCEs must function and be handled under the law. Notably, AUSTRAC has said that anti-money laundering/counter-terrorism legislation does not require banks to cancel the accounts of crypto dealers.
According to Flynn, ANZ and Westpac’s conduct indicates that “the banks do not want competition,” and that if DCEs are permitted to operate unhindered, they would “break the speed limit and overtake conventional banks.”
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