Chawthil FN/Hope – In a May 21 media release, Council Aaron Pete, sent out a statement on behalf of Chawathil First Nation.
In part: 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. Quote from Councillor Aaron Pete: “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”.
Black Press is reporting that CIBC is investigating.
CIBC has failed to meet the basic needs of vulnerable populations in
a First Nation community. Chawathil First Nation (CFN) is deeply concerned about recent
interactions with the Canadian Imperial Bank of Commerce (CIBC), which have highlighted
significant issues in the bank’s ability to serve First Nation communities and vulnerable
populations effectively and respectfully.
Ongoing Issues with Unauthorized Withdrawals
Since May 3, 2023, CFN has experienced unauthorized withdrawals from its Social Assistance
Account. A significant transfer request in excess of $80,000 was halted due to insufficient funds,
but subsequent smaller withdrawals between $800.00 and $1200.00 went unnoticed by CIBC.
These withdrawals were not flagged for potential fraud, raising serious concerns about CIBC’s
fraud detection processes.
In January 2024, the Social Development Manager discovered the shortfall and notified 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.
Challenges with CIBC’s Customer Service and Policies
CFN’s Chief Administrative Officer (CAO) encountered significant difficulties coordinating with
CIBC’s head office in Ontario due to time zone differences, with CIBC staff showing inflexibility
in scheduling. Additionally, outdated bank policies requiring all account signers to be physically
present hindered CFN’s efforts to manage accounts efficiently.
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 remained inadequate.
Lack of Support and Transparency from CIBC
On March 6, 2024, another fraudulent transaction attempt was thwarted due to a stop-
payment order. 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. Only after persistent efforts did CIBC
initiate the investigation, admitting their lack of experience in such matters.
Impact on Community Members
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.
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.
Call to Action for Financial Institutions
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.
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.
