Merciful Group Incorporated v Norfina Limited trading as Suncorp Bank

2025/00309728

CONTRACTS – Merciful Group Incorporated (a registered charity) had a bank account with Norfina Limited (the Bank) since 2019 – the parties’ contractual relationship is governed by a written instrument entitled Terms and Conditions for Suncorp Bank Accounts and for Continuing Credit Accounts (Terms and Conditions) – the Terms and Conditions define “Legitimate Interests” (cl 1.3) and provided that the Bank could close the account to protect its Legitimate Interests (cl 15(c)) or because it needs to “by law or to meet our prudential requirements” (15.2(d)) – the Bank’s Executive Manager, Financial Crime – Strategy & Operations made the decision that Merciful should be exited as a customer of the Bank because the continued provision by the Bank to Merciful of designated services posed an unacceptable money laundering/terrorism financing risk that could not be appropriately mitigated and managed, having regard to the Bank’s systems and controls for managing such risk – on 16 April 2025, the Bank gave written notice to Merciful that on 8 May 2025, the Bank would be closing its account “in accordance with section 15.2 of the Terms and Conditions for Suncorp Bank Accounts” – on 6 May 2025, Slattery J granted an injunction, ex parte, restraining the Bank from terminating the account unless required by law and subject to further order of the Court – on 19 May 2025, Elkaim AJ extended the operation of the injunction – the primary judge found that the Bank had every basis to conclude that there was an unacceptable risk of it assisting money laundering/terrorist financing and that closing the account was a reasonable and appropriate response, further, the Bank was not required to make any finding that money laundering/terrorist financing had actually occurred – the primary judge dismissed the proceedings and dissolved the injunction – whether the primary judge erred in various findings as to the interpretation of cl 15.2 (c) and (d) – whether the primary judge erred in finding that the respondent’s decision to close the account was reasonable and in failing to find that the respondent’s decision to close the account was not reasonable and was not necessary to protect its legitimate business needs or to meet prudential requirements, and was therefore in breach of cl 15.2.

Merciful Group Incorporated v Norfina Limited t/as Suncorp Bank [2025] NSWSC 841