A longtime RBC client in Ontario says he was told to take his business elsewhere after three decades with the bank, thrusting a rare but consequential practice under the spotlight.
In a broadcast segment, Thomas Nassab of Alliston said he received a letter informing him the bank was “no longer in a position to continue [its] banking relationship” with him and that he had 30 days to move his money.
He said the notice arrived days after he escalated complaints about in-person service and difficulties moving funds within his investment accounts.
Nassab said he was given no detailed explanation for the decision and appealed to RBC to reverse it.
“To be removed completely with zero explanation is very disappointing,” he told CTV. Royal Bank of Canada declined to discuss the individual case, citing privacy.
In a statement to the broadcaster, a spokesperson said either a client or the bank may choose to end a relationship and that such decisions follow a thorough review and “are never made lightly.”
Banks in Canada can end relationships for a range of reasons, including suspected fraud or money-laundering risk, policy violations, or abusive conduct toward staff.
Federal rules require banks and other reporting entities to use a risk-based approach to monitor clients and take steps when risk exceeds their tolerance, which can include closing accounts in some situations.
Guidance from Canada’s anti-money-laundering regulator outlines how institutions assess and respond to risk across customers, products, and geography, part of a broader regime that has tightened in recent years.
Nassab’s experience is uncommon, but it underscores the practical power imbalance when a bank says no.
Losing a primary banking relationship can disrupt bill payments, credit lines, and access to registered and nonregistered investments, and it can echo across family accounts.
The fallout can persist if other institutions hesitate to onboard a client who has just been exited elsewhere.
If a bank ends a relationship, consumers typically receive written notice so they have time to move their accounts.
The Ombudsman for Banking Services and Investments says banks usually give about 30 days to complete the transition.
Clients may need to open a new account at another institution, redirect direct deposits and preauthorized payments, and transfer investment holdings.
Consumers who feel they were treated unfairly can use the formal complaint process.
The Financial Consumer Agency of Canada outlines a route that begins with a complaint to the firm, followed by escalation to its designated internal complaints office.
If a bank has provided a final response or if 56 days pass without resolution, consumers can take the case to OBSI, which provides free, independent dispute resolution for most banking and investment complaints.
OBSI can recommend compensation when it finds a bank acted improperly, though it does not order firms to maintain relationships when risk concerns are substantiated.
Transferring registered accounts can trigger fees or delays. Clients should ask for a written list of all products, pending transactions, and deadlines.
RBC did not elaborate on the basis for its decision in Nassab’s case. The bank’s response to the broadcaster framed relationship exits as the result of internal reviews.
The segment noted that banks also cite policy violations or abusive behavior as reasons to sever ties.
Whatever the cause, the episode is a reminder that while customers can switch banks at any time, institutions can also decide when a relationship no longer fits their risk appetite.
