Australia: How Financial Services Entities Can Better Respond to the Needs of First Nations Consumers


The Australian Securities and Investments Commission (ASIC) has published information highlighting the challenges First Nations persons face in respect of identity verification for accessing financial products or services, such as opening bank accounts or withdrawing from superannuation funds.

ASIC said these challenges arise due to First Nations persons often having multiple names (e.g. traditional name, Western name, relatives with the same name) and conflicting dates of birth. Indigenous Australians also face language barriers and geographic isolation from financial services.

At a workshop hosted by ASIC on 30 November 2023, AUSTRAC Director of Regulatory Guidance, William Morris, said a misunderstanding by providers as to the legislative requirements of identity verification and AUSTRAC’s guidance could also lead to First Nations persons being denied access.

The purpose of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 is to ensure businesses adopt identification verification processes to detect and prevent money laundering and other crimes. However, Mr Morris said this purpose should not exclude vulnerable persons from financial services.

In certain situations, a flexible identity verification approach could be used for those individuals who seek access to “low-risk” services, such as opening a bank account or depositing a small amount of funds. In addition, Mr Morris said:

Further information in respect of the challenges faced by First Nations consumers is accessible here.

This article was co-authored by Laura McFadzean.


Copyright 2025 K & L Gates
National Law Review, Volume XIV, Number 38