THE Australian Bankers' Association has called on the Federal Government to act on financial abuse against the elderly by Christmas.
The Seniors Rights Service in NSW estimates 40 per cent of elder abuse cases relate to financial exploitation.
ABA chief executive Anna Bligh said Australia needed an appropriate designated organisation where bank staff can report suspected financial abuse for investigation.
"There are far too many heartbreaking stories of elderly, vulnerable Australians who have been financially exploited by family members or close friends," Ms Bligh said.
"Bank staff are on the frontline of this issue and see first hand the financial abuse against the elderly, however are often hamstrung to confront the issue.
"Banks are determined to play their part and are asking for key changes to the law to empower their staff to make good faith reports of financial abuse against the elderly.
"Bank staff are not qualified to make assessments about a customer's competency and are limited by legal and confidentiality obligations, therefore it's important they have an appropriate body to flag suspected abuse for investigation," Ms Bligh said.
"Also, Federal and State Governments need to address the inconsistency in the power of attorney legislation which is making it overcomplicated for employees to detect and report abuse.
"From state to state there are differences between formal substitute decision making legislation, which can limit banks' ability to detect and report financial abuse of customers.
"In most states such as NSW, Queensland and Victoria, powers of attorney are not required to be registered formally, making it hard for banks to check the legitimacy of a power of attorney.
"If there was a national register with consistent laws across the country it would help banks - and indeed other financial institutions - to verify the authority of a power of attorney or court-appointed administrator when they present themselves as acting on behalf of a customer," she said.
The challenges banks have in reporting suspected financial abuse were highlighted by the Australian Law Reform Commission in its 2017 report to the Federal Government, Elder Abuse - A National Legal Response.
The ALRC recommended the establishment of an agency to investigate suspected financial abuse and a national register of power of attorneys both of which will require the support of the Australian Government and all State and Territory Governments.
