Adult content creators claim Canadian banks cancelling accounts over ties to sex industry

Canadian adult content creators are sounding the alarm; claiming multiple banks have frozen or closed their accounts after discovering they have ties to online sex work. In one case, a user making money through the website OnlyFans posted a letter on Twitter from CIBC alerting her they are closing her accounts. The woman claims it’s because the bank discriminates against sex workers.

Websites like OnlyFans surged during the COVID-19 pandemic, as many searched for extra ways to earn income. The website is a popular social media platform that allows content creators to sell photos, videos, and other content to fans.

“I think that this kind of financial discrimination would surprise most people,” says Patrick Keilty, associate professor in the Faculty of Information and Centre for Sexual Diversity Studies at the University of Toronto. “I don’t think most people know that the bank can shut your account down just because they have a problem with the kind of work you do.”

More tweets from online adult content creators claim they experienced similar issues. One user claimed her account with TD Canada Trust was closed because of her involvement with the adult industry, adding she may never get those funds back. Another user who banked with BMO Bank of Montreal posted, “…because of deposits from OnlyFans they told me they were going to close my account.”

“In theory, one reason why it happens, though this is not a complete explanation, is that small payments are hitting your account, especially when you’re on something like OnlyFans” says Keilty. “It’s just seen as unusual activity but instead of the bank calling you and trying to understand why that might be the case, like they would if I had unusual activity on my account, in this case curiously they’ll shut the account down even as money is coming in.”

However, experts say this is a long, deep-rooted issue with financial institutions. People like exotic dancers and drag performers also often face barriers when trying to deposit a large amount of small bills.

Keilty says women are disproportionately being cut out of financial infrastructures, stating “There is a very long history of women and people of colour not receiving the kind of financial services that men or white people receive.”

Sex worker advocates say the Canadian government passed the Protection of Communities and Exploited Persons Act in 2014 which is impacting workers across the sex industry, not just victims of trafficking.

“Now that we have this human trafficking hysteria and all this funding for anti-trafficking initiatives, banks are now being told that they have to be partners in this and if they tolerate sex work within their banking system, they are encouraging human trafficking,” says Sandra Wesley, executive director of Stella, l’amie de Maimie.

“So they are given all these indicators and asked to proactively investigate their clients to see if they might be sex workers.”

Stella, l’amie de Maimie is an organization by and for sex workers based in Montreal. Wesley says part of the problem is that the term ‘sex work’ is broadly defined in Canada. She adds the definition of human trafficking also continues to be expanded and can sometimes target sex workers choosing to offer services online.

The lack of access to Canadian bank accounts is now forcing sex workers to turn to things like crypto currency to do basic transactions online and make a living, with one worker saying, “If you’re telling sex workers that we have to keep our money in cash, in our house; then we can’t be surprised when people come and rob us.”

If sex workers attempt to fight banks for access to their accounts, they can also run into issues. “If you argue you are not a victim of trafficking, then it means you are just a criminal doing sex work,” says Wesley.

“Because we have two sets of laws that criminalize it either way, it’s very hard to make a case, and being outed as a sex worker can also involve many other consequences.” Wesley says those consequences can include being banned from traveling to the U.S., being evicted from housing, or even having children taken away.

Advocates are calling for sex work to be decriminalized in Canada so workers can have access to banks, employment standards, occupational health and safety protections, maternity leave and more. “That’s why we are fighting so hard against criminalization. It has nothing to do with an opinion of sex work, we recognize there is a lot of exploitation in our industry and the solution needs to be the same as every other industry, which is to give workers rights,” says Wesley.

In a statement to CityNews, Scotiabank says the bank “cannot comment on individual customer matters for privacy reasons. Scotiabank accepts funds from various subscription platforms, including OnlyFans, but does review each scenario independently.”

A spokesperson for CIBC tells CityNews, “Any decision to end a banking relationship is not taken lightly and is based on a number of factors. We have inclusive banking policies, and clear processes where clients can have their concerns reviewed if they do not agree with the decision.”

CityNews also reached out to TD and BMO but did not get a response.

Advocates say sex workers who are worried about bank accounts or any other risks can speak to outreach workers or groups for help. The Canadian Alliance of Sex Work Law Reform works with 26 agencies across Canada including Stella, l’amie de Maimie.