The Australian Securities and Investments Commission has approved a new code of practice for the banks, which will take effect on Feb 28, 2025.

The changes in the Australian Banking Association’s Banking Code of Practice include an expanded definition of small businesses from $3 million in aggregate borrowings to $5 million, meaning another 10,000 businesses will be protected under the code, as well as new provisions for managing deceased estates, and a push to offer customer access to interpreters and sign language.

The update follows a 2021 independent review of the code, led by former treasury executive director Mike Callaghan.

ABA CEO Anna Bligh said the new code will provide an even higher standard of customer protections for Australians.

“This is a Banking Code with teeth,” she says.

“Customers can continue to take complaints to the Australian Financial Complaints Authority or the courts who can then take strong action when necessary.

“The Banking Code Compliance Committee will also continue to independently monitor compliance by banks.”

Sex worker advocate Matthew Roberts, who was involved in the 2021 Independent Review of the Banking Code of Practice to look at ways the code can address debanking, says the ABA wants to maintain the right for its members to close customer accounts and keep them in the dark as to why their accounts were suddenly closed.

“You can see the ABA’s response to Recommendation 58, where they oppose a requirement to give reasons to close a customer’s account,” he says.

“Australian law permits, in most cases, banks to give reasons why an account is closed.

“Only in a small number of cases where actual criminal activity takes place, are banks not permitted by law to provide a reason for account closure.

“Banking customers deserve to know the reason their accounts are closed by the banks. Under the new Banking Code of Practice, banks can shut customers’ accounts without giving a reason, even when it is lawful for the banks to provide the reason for the account closure.

“The new code represents yet another missed opportunity for Australia to take real action to address the pervasive problem of debanking, which currently affects tens of thousands of bank customers.”

Some sex industry professionals have previously told the ABC they faced discrimination from financial services providers.

Mish Pony, CEO of Scarlet Alliance, says there’s nothing in the new code that will change the status quo for sex workers.

“No mention of debanking, financial discrimination, or recourse against account closure or service denial,” they say.

“Whilst there’s some positive recognition of inclusive and accessible banking including for incarcerated people and people recently released from incarceration, sex workers are not listed as a group affected by discriminatory practices.”