After Angie Sweeney split with her abusive boyfriend, she blocked all of his social media and messaging accounts. She couldn’t stop him from sending her countless wire transfers to convey threats and intimidation through optional message fields.
Her ex-partner killed Sweeney just days later. That same night, he drove to the home of another ex-partner, where he injured her and killed their three children before turning the gun on himself. The shooting shocked the small community of Sault Ste. Marie, Ontario, and left many questions about how the violence could have been prevented.
After the story broke, many victims and survivors with similar experiences came forward. They said it was difficult for them to ask banks for help, only to be told there was nothing they could do. CBC reached out to all of Canada’s major banks in April for a follow-up, but none responded directly, referring the matter to the Canadian Bankers Association (CBA).
The Canadian Centre for Women’s Empowerment (CCFWE), in collaboration with the Canadian Women’s Shelter Association, sent an open letter to major banks, Interac and the Banking Association, calling for action to combat the widespread problem. The groups cited the UK and Australia as examples of financial institutions that have implemented effective measures to prevent fraudulent use of electronic funds transfers.
The Commonwealth Bank of Australia developed an AI-generated message tracking system to detect offensive language in electronic funds transfers. Since 2020, the bank has blocked approximately 400,000 messages per year. The project has been so successful that the bank is offering the technology free of charge to financial institutions around the world.
Women’s economic empowerment is critical to Canada’s strategy against gender-based violence.
The close connection between mass shootings and violence against women
UK-based Starling Bank has taken a different approach: It has implemented a “hiding reference” feature that allows the bank to black out messages from certain senders while still accepting payments.
Both approaches are effective and, when tailored to the Canadian context, offer concrete solutions to financial institutions in this country.
In response to the open letter, the Canadian Bankers Association and Interac said they would address the issue of wire transfers in the context of domestic violence. It’s a welcome promise, but advocates want action.
While media attention has focused specifically on electronic funds transfers, this is only one of the issues victims and survivors of abuse face with banks.
CCFWE 2021 research found that victims-survivors view financial institutions as among the least helpful service providers. Based on consultations with victims, survivors and social services, three main challenges were identified:
Weaponization of financial instruments: As part of post-separation abuse, continued control and intimidation, including through electronic funds transfers, can have serious effects on the mental health of victims. Exploitation of financial instruments can have serious economic effects on victims. For example, increased digitalization allows perpetrators to open credit cards in the victim’s name without the victim’s knowledge or consent, racking up debt for which the victim is responsible. Ontario’s current legislation addressing forced debt only applies to victims of human trafficking. Without legal frameworks and legal support resources, victims of domestic violence are often left to shoulder the financial burden of the abuse. Lack of trauma-informed services and knowledge about financial abuse: Without proper support, victims may be re-traumatized, feel alone, and misunderstood. Lack of understanding of this issue can have serious implications on women’s safety. Victim-survivors report that financial institutions shared personal information, such as new addresses and phone numbers, with ex-partners who are registered as joint account holders, despite being informed of the domestic violence. This can put the physical safety of survivors and their children at risk. Lack of access to financial services and products: Survivors are often unable to open a bank account or apply for a loan because they have lost their identity documents or have low credit scores as a direct result of the abuse. After fleeing violence with almost no money, survivors are often unable to raise even small amounts of money up front to get back on their feet. Benefits take time to be disbursed, and they also need a bank account. Without access to traditional financial services, many survivors turn to unscrupulous lenders. This makes them vulnerable to further exploitation and debt, perpetuating a vicious cycle of poverty and violence.
One of the main reasons women stay in or are forced to return to abusive relationships is financial insecurity — they literally cannot afford to get out.
The Canadian Women’s Empowerment Centre is calling on provincial and territorial governments to prioritize the economic safety and security of victims as they implement the National Action Plan to End Gender-Based Violence.
But this is not just the responsibility of governments: the private sector, and particularly the financial sector, also has a responsibility. In Australia, a parliamentary inquiry is looking into the role of banking institutions in relation to domestic violence and their duty to prevent financial abuse.
In consultation with victims and survivors across Canada, CCFWE has learned that bank employees are often the first to share concerns about potential financial abuse, before victims tell family and friends. Particularly among Black, Indigenous and People of Colour (BIPOC) populations, taboos around money often prevent victims from speaking publicly about being abused. Financial institutions are uniquely positioned to detect and prevent further financial abuse.
Tackling the difficult challenge of making financial services more fair and inclusive for survivor customers may seem daunting. But there are small, concrete steps financial institutions can take. Staff training programs and changes to product features to increase security and independence for vulnerable customers can contribute to meaningful progress.
Last fall, CCFWE released a report outlining successful efforts in the UK, Australia and Canada, as well as 12 recommendations for Canadian financial institutions to provide concrete solutions in the short, medium and long term, including:
Implemented training and customer communication materials for frontline staff. Developed fraudulent transaction monitoring for electronic funds transfers and a “hidden reference” feature to detect fraud. Enhanced validation of online credit card applications. Provided special assistance to victims in select bank branches that employ trauma-informed staff. Established a red flag for financial fraud on joint accounts. Designed branches as “safe spaces” for victim-survivors.
Substantial legal reform is necessary to make a significant difference in how banks treat abused customers. But financial institutions must also play their part by taking more concrete steps and working towards bigger policy changes over time. In doing so, the financial sector can play a vital role in safeguarding the economic well-being and independence of victims of domestic violence.
This article originally appeared on Policy Options and is republished here under a Creative Commons license.
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