Financial control as a form of domestic abuse

The European Institute for Gender Equality (EIGE), defines economic violence as "any act or behaviour which causes economic harm to an individual", often meaning that victims are unable to gain economic security. Victims might be subjected to different forms of violence at once, with some subjected to homelessness, lack of health care access and no career prospects without the support from their partners.

In the European Union, 12% of women above the age of 15 have experienced some form of economic violence by a partner, with women in heterosexual relationships particularly affected. However, both the general public and institutions remain unaware on how to recognise and address the impact of financial control in intimate relationships.

Social norms shape abuse

Sally Yacoub, a Montreal-based gender, financial and social inclusion consultant, explains that economic violence is tightly linked to social norms. These norms determine whether women have the right to make financial decisions, keep their savings private, control their income, or own a business.

"It doesn't happen by magic," she says. "Men's income can be diverted to business and building assets, with the goal of financial autonomy and stability. Women, meanwhile, are stuck with never-ending household expenses."

While Yacoub's work has a global focus, she draws especially on her experiences with communities in Uganda and Tanzania. She explains just how norms can keep women economically trapped. In rural areas, women with limited digital literacy often rely on husbands or sons to manage their mobile wallets, only to see their accounts depleted. While her examples come from developing countries, she stresses that economic abuse is a global issue.

Economic violence can range from a husband demanding access to his wife's bank account, to pressuring them into taking a loan, or preventing them from pursuing work or education.

Yacoub underlines that effective solutions require financial products designed with client safety in mind. "Intentionality is key, safety by design", she stresses, adding that it's crucial to "be intentional about designing products that can actually work and protect the end user, the survivors".

What financial institutions can do

Amelia Greenberg, Deputy Director at SPTF+Cerise, a non-profit standards-setting organisation that has offices in Luxembourg, France, and the United States, emphasises practical steps financial institutions can take to protect their clients.

"There's some pretty low-hanging fruit when it comes to training staff", she says. Clerks should be able to spot red flags, such as a sudden, unusually large loan request from a borrower who usually applies for the same amount each year. Such changes may point to external pressure.

Confidentiality is another crucial aspect. In many households, devices are shared, meaning that sending confidential information to a phone could expose a victim trying to hide accounts from their partner. Even routine customer satisfaction surveys can reveal hidden loans or savings. Greenberg stresses that offering opt-outs, alternative contact methods, or allowing customers to choose how and when they are contacted is "an inexpensive fix" that can go a long way.

Ultimately, she argues, institutions must adapt and implement sector-wide standards. "It's a public good", Greenberg says, referring to the tools SPTF+Cerise offers. "Any financial service provider, whether a mobile operator, a bank, or a micro-finance institution, can look at our standards and ask: am I doing these things? If not, I’m at risk of harming my customers."

A complicated European landscape

Council of Europe member states that ratified the Istanbul Convention are in theory legally bound to set measures in place tackling economic violence. In practice, however, perpetrators' actions within intimate relationships are rarely criminalised, leaving many victims without proper protection.

On the other hand, the EU's Victims' Rights Directive does recognise economic violence and requires member states to ensure victims receive protection and support. That said, it was only recently, in 2024, that the EU adopted its first law on violence against women and domestic violence, officially recognising economic violence as a form of abuse and establishing measures to tackle it. Its impact, however, remains to be seen as implementation unfolds.

If you or someone you know is experiencing abuse, there are resources available in Luxembourg to offer support. Violence.lu provides a list of services for women in need. Additionally, SOS Détresse offers help through their 454545 hotline, and Femmes en Détresse provides information through their VISAVI service.