The Decibel What happens when your bank dumps you
Feb 11, 2025
This conversation features Erica Alini, a personal economics reporter for The Globe, who delves into the unsettling phenomenon of 'debanking' in Canada. She explains how banks often sever ties with customers without clear reasons, creating chaos for individuals, especially entrepreneurs. The discussion covers the emotional and financial ramifications of losing access to banking services. Erica also highlights racial bias in debanking cases and the increasing scrutiny on cryptocurrency users, revealing significant implications for marginalized communities.
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Debanking in Canada
- Canadian banks are increasingly closing accounts without specific reasons, a practice known as "debanking."
- This is often due to suspected fraud or money laundering, but innocent people can be affected.
Regulatory Pressure and Debanking
- Increased regulatory pressure and hefty fines for money laundering are pushing banks to be more cautious.
- This leads to more suspicious transaction reports (STRs), potentially contributing to increased debanking.
Crypto CEO Debanked
- Adam O'Brien, CEO of a crypto company, has been debanked multiple times, likely due to his business.
- His wife was also debanked twice, even after separating their finances from his crypto business.