Latest / Best of Business / Jenee Tibshraeny: NZ Herald Wellington business editor on BNZ challenging Gloriavale over use of banking services

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Jenee Tibshraeny: NZ Herald Wellington business editor on BNZ challenging Gloriavale over use of banking services · Best of Business

• 0:09
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  Speaker 2: Now Gloria Vale has taken a knock in the battle
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  Speaker 2: to keep access to banking services. Be and Z has
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  Speaker 2: been wanting to close Gloria of Vale's accounts for two years.
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  Speaker 2: Now it's going to be decided at trial. Genative Trainee
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  Speaker 2: is The Herald's Wellington business editor and with us now, hey.
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  Speaker 3: Jana, hey Heather.
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  Speaker 2: Even before it gets to trial, there's going to be
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  Speaker 2: a hearing on an injunction, right, and so these accounts
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  Speaker 2: could close before it even goes to trial.
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  Speaker 3: Is that right, Yeah, that's right. So B and Z
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  Speaker 3: was upset because the court said that it had to
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  Speaker 3: keep Gloria Vale's accounts open until the issue was dealt
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  Speaker 3: with at trial. So B and Z went to the
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  Speaker 3: Court of Appeal and said, hey, look, we don't agree
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  Speaker 3: with this interim injunction. Now the Court of Appeal will
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  Speaker 3: look at that issue. Depending on what the Court of
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  Speaker 3: Appeal finds, you know, that could end up being quite
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  Speaker 3: a big blow for Gloria Vale. Of course, you know,
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  Speaker 3: like all of us, you need a bank account to
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  Speaker 3: operate in today's society, and Gloria Vale is no different,
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  Speaker 3: you know, to the rest of us.
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  Speaker 2: Yeah, so what's bnz's argument of white wants to suspend
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  Speaker 2: the accouncil shut them down.
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  Speaker 3: Well, bn Z took action in twenty twenty two after
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  Speaker 3: employment court decision was made that said some former Gloria
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  Speaker 3: of our members who'd been working in the community since
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  Speaker 3: they were six years old should have been treated as employees,
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  Speaker 3: not volunteers. So that prompted ben Z to say, sorry, Glorivale,
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  Speaker 3: we want to get rid of you. We don't want
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  Speaker 3: to bank you anymore because you know you're set up
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  Speaker 3: doesn't align with our human rights policy. So bn Z
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  Speaker 3: gave Gloria three glorival three months to find another bank.
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  Speaker 3: Glorivale couldn't find another bank, so you know, the issue
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  Speaker 3: has ended up in court. Now. The thing here here
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  Speaker 3: that I think it's actually a really interesting case. A
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  Speaker 3: for Gloria Vale, as I said before, it needs a
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  Speaker 3: bank to sort of serve in the modern world. But
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  Speaker 3: b this issue could set a legal president for other
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  Speaker 3: banks in terms of you know, sort of providing some
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  Speaker 3: clarity around the extent to which banks can choose who
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  Speaker 3: they do business with.
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  Speaker 2: Takes us to the Nigel Farage case, doesn't it, where
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  Speaker 2: the bank just decided they didn't want to do banking
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  Speaker 2: with him and that was the end of that.
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  Speaker 3: Yeah, there are quite a few examples of this at
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  Speaker 3: the moment, So cryptocurrency traders and businesses, also money remitters,
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  Speaker 3: these are some of the things that have been d banked.
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  Speaker 3: The banks have said, no, you pose too much of
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  Speaker 3: a risk to us, you know, because we don't know
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  Speaker 3: if you're laundering money, for example. That's been a concern
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  Speaker 3: with some of the money remitters and the cryptocurrency people. So,
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  Speaker 3: you know, there is this kind of larger debate at
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  Speaker 3: the moment. Can banks choose who they do business with?
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  Speaker 3: And you know, what are the consequences if banks say no, sorry,
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  Speaker 3: we don't want anything to do with you. Is quite
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  Speaker 3: a hot topic.
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  Speaker 2: Yeah, totally. What happens if Gloria Vale has its accounts
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  Speaker 2: shut down? Do they have to just draw millions and
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  Speaker 2: millions of dollars out and stick it in suitcases?
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  Speaker 3: Gosh, well, we'd have to wait and see. You know,
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  Speaker 3: this glory of Vale is definitely coming under increasing pressure
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  Speaker 3: from so many fronts at the moment, So you know,
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  Speaker 3: that this will be a key issue. It's lawyers, you know,
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  Speaker 3: argue that these are a vulnerable people and you know
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  Speaker 3: you can't just remove banking services from them. But you know, beans,
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  Speaker 3: it is a private company. If it doesn't want to
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  Speaker 3: give me a mortgage, it doesn't have to.
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  Speaker 2: Yeah, Jennay, thank you very much. Thanks for runningus through it.
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  Speaker 2: Jenetive trainee the Heralds Wellington Business Editor.
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