Image: Mike Vanden Bosch / Pattison Media / A First Nation band west of Hope alleges banking giant CIBC has failed to meet the basic needs of vulnerable populations among its Indigenous members.

By Mike Vanden Bosch

Chawathil First Nation

Chawathil First Nation in Hope deeply concerned by CIBC banking activities; bank responds

May 27, 2024 | 11:09 AM

CHILLIWACK — A First Nation band west of Hope alleges banking giant CIBC has failed to meet the basic needs of vulnerable populations among its Indigenous members.

According to a news release from Councillor Aaron Pete, a member of Chawathil First Nation who spoke on behalf of the band, Chawathil First Nation (CFN) has expressed deep concerns about recent interactions with the Canadian Imperial Bank of Commerce (CIBC). They’re speaking up to highlight what they say are “significant issues in the bank’s ability to serve First Nation communities and vulnerable populations effectively and respectfully.”

Councillor Pete, a portfolio holder for finance, tax, economic development and housing with the band, alleges CFN has experienced unauthorized withdrawals from its Social Assistance account. More specifically, a significant transfer request of over $80,000 was halted due to insufficient funds, however, subsequent smaller withdrawals between $800 and $1,200 went unnoticed by CIBC.

Image: Aaron Pete / Chawathil First Nation Councillor Aaron Pete, a UBC law school graduate.

These smaller withdrawals were not flagged for potential fraud, elevating serious concerns about CIBC’s fraud detection processes, Councillor Pete said.

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In January 2024, the band’s social development manager discovered the shortfall and notified Chawahtil First Nation’s chief and council. Despite notifying CIBC and requesting a new account and stop-payment order, no fraud investigation was initiated until repeated requests were made by CFN representatives, Councillor Pete stated. Moreover, CFN’s chief administrative officer (CAO) encountered significant difficulties coordinating with CIBC’s head office in Ontario due to time zone differences, and claims CIBC staff showed inflexibility in scheduling. Additionally, Councillor Pete alleged, outdated bank policies requiring all account signers to be physically present adversely impacted CFN’s efforts to manage accounts efficiently.

“Fraudulent activities have compromised our CIBC social development account, on which our members depend for survival, yet CIBC has failed to take necessary action to address the fraud, leaving our members struggling to survive inflation and the rising cost of living without support,” Councillor Pete said. “First Nation communities have a wide range of responsibilities to their members and need reliable partners to assist in this important work. Unfortunately, CIBC has been incredibly difficult to work with and has repeatedly failed our members, especially our most vulnerable.”

In February 2024, CFN acknowledged internal process errors and implemented measures to safeguard accounts, including hiring a new controller. However, CIBC’s response to subsequent fraudulent activity was deemed inadequate.

On March 6, 2024, another fraudulent transaction attempt was thwarted due to a stop payment order, Councillor Pete said. Despite this, CIBC failed to initiate a fraud investigation. When a CFN councillor followed up in March 2024, the bank manager revealed that no investigation had begun and suggested the Councillor contact the fraud line directly, the band said. Only after persistent efforts did CIBC initiate the investigation, admitting their lack of experience in such matters, Councillor Pete reported. In April 2024, CFN’s social assistance accounts were frozen without explanation, causing hardship for community members reliant on these funds.

“CIBC’s lack of communication and empathy exacerbated the situation, forcing members to wait for essential funds,” Councillor Pete said.

Most recently, on May 14, 2024, CIBC informed CFN that a new account could not be used due to an error, advising the use of the compromised account. Despite CFN Councillors seeking alternative solutions, CIBC refused further discussion, Councillor Pete said. CFN has since met with other financial institutions and professionals who expressed shock at CIBC’s treatment of the Nation.

“CFN has worked diligently to resolve these matters internally and warned CIBC of the intention to make this experience public if the issues persisted,” Councillor Pete said. “Chawathil First Nation is committed to the well-being of its members and expects to collaborate with organizations that share these values. Unfortunately, CIBC has not demonstrated the necessary care or concern throughout this process. CIBC has not acknowledged the vulnerability of CFN’s clients, nor the impact of their service failures on individuals living in poverty, especially during a cost-of-living crisis. CFN publicly shares this information to raise awareness of CIBC’s management practices and urges other organizations, particularly First Nations, to scrutinize the services provided by financial institutions to ensure fair, transparent, and ethical treatment.”

Tom Wallis, a Toronto-based spokesperson for CIBC, released an emailed statement Monday morning (May 27) saying the bank is working with CFN to resolve the issue in a timely fashion.

“CIBC is dedicated to providing tailored, accessible, and reliable financial services to First Nations, Inuit, and Métis clients in BC and across Canada,” Wallis said in an email to Fraser Valley Today. “We value client feedback and whenever a concern is raised, we take it seriously and investigate, as we are doing in this case. Our team is focused on providing exceptional service every day and we are working directly with our client to resolve this matter in a timely manner.”