IHC welcomes Westpac’s research highlighting the barriers disabled people face in accessing banking services. These challenges, which IHC has raised repeatedly over the past decade, underscore the urgent need for systemic changes to promote financial inclusion for disabled communities.

As a member of the New Zealand Banking Association Older and Disabled People Focus Group, IHC has long advocated for fair and accessible banking practices. A particular area of concern is the disproportionate impact of Anti-Money Laundering (AML) legislation and Know Your Customer (KYC) standards on intellectually disabled people in residential care.

“These regulations, while essential to combat financial crime, have created significant barriers for a marginalised group, limiting their ability to access and manage banking services,” says Tania Thomas, Director of Advocacy at IHC.

Key issues impacting intellectually disabled people

Know your client documentation requirements
Many people with intellectual disabilities lack the necessary photo identification or address verification documents required by KYC standards. Additionally, frequent changes in disability support staff complicate the verification process for those assisting account holders.

Banking decisions on capacity
Banks often require legal authority, such as appointing a welfare guardian, for someone to manage an account if they deem the account holder incapable. The process of appointing welfare guardians is cumbersome, costly and infringes on the disabled person’s rights to manage their own finances.

“We have seen many cases where intellectually disabled people have their accounts frozen by the bank, sometimes for considerable periods," says Tania. "Many intellectually disabled people are already financially very precarious so even freezing an account for one day can cause significant harm and distress for the person."

The call for action

IHC is advocating for the formation of a government-led taskforce, recently writing to the Minister of Justice and the Banking Ombudsman about these issues. This group would work to identify practical, sustainable solutions, including:

• Clarifying and expanding the legal authority of disability service providers to manage bank accounts.
• Exempting intellectually disabled individuals in residential care from certain AML/KYC requirements.
• Funding for financial management as part of disability support assessments.

“This issue is about fairness and dignity,” Tania emphasises. “No one should face discrimination or financial exclusion because of unnecessary barriers. We need swift action to ensure disabled people have equal access to essential financial services.”

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