The need for a bank account is obvious for most businesses. However, the proliferation of regulations to combat money laundering and fraud is leading to financial institutions being more cautious, requesting more information and ultimately often refusing to provide basic banking services.
On 8 November 2020, a legal framework was created to make it still possible to qualify for basic banking services after a number of rejected applications. The associated Royal Decree was passed at the end of 2022 and businesses have actually been able to submit applications for these services since the beginning of 2023, when the members of the Chamber of Basic Banking Services were appointed by Ministerial Decree.
Depositing and withdrawing money, performing transfers and setting up standing orders and direct debits, holding a bank card and using online banking constitute basic banking services.
Basic banking accounts are provided in euros. On request, an account can be provided in US dollars as an exception to this rule, but in that case cash cannot be deposited or withdrawn.
Any business established in Belgium [1] that is registered or applies to be registered with the Crossroads Bank for Enterprises is entitled to basic banking services.
The following entities are not regarded as businesses according to this article and are therefore not entitled to this service:
In addition to businesses, embassies are also entitled to submit an application and obtain basic banking services.
At present, the following institutions offer basic services:
The application may be submitted to the Chamber of Basic Banking Services if it can be demonstrated that the businesses has been turned down by at least three credit institutions.
The application can be submitted online through the website of the FPS Economy. The applicant must be able to log in to CSAM [2] in order to make an application. Business managers who do not yet have access to CSAM may ask a credit institution that has turned down their application for banking services to provide a paper application form for CSAM free of charge.
This application must be accompanied by a declaration that the business does not currently have access to a basic banking service. A template for this is available on the website of the FPS Economy.
The following documents must also be provided:
After the application has been submitted, the Chamber of Basic Banking Services uses the following procedure:
The Chamber of Basic Banking Services has two months from the receipt of the application to appoint a service provider, unless additional risk mitigation measures need to be taken. The Chamber of Basic Banking Services does not perform any substantive checks on this information, but passes it on to the basic banking service provider, which checks whether the applicant business meets the conditions.
The basic banking service provider then has ten business days to provide services. These ten business days do not include the time required for customer identification and any risk mitigation measures.
The basic banking service provider may refuse if:
The refusal must be communicated to the applicant in writing and with reasons within ten days, unless this would be contrary to national security, public policy or money laundering legislation.
The basic banking service provider may terminate the basic banking service if:
Notice of the termination must be given in writing; no fee may be charged, and reasons and a justification must be provided, unless the reason is related to money laundering and/or terrorist financing.
A notice period of two months must be given.
The basic banking service is not free of charge. The provider determines the charges. The number of electronic transactions is always unlimited.
Problems and complaints can be reported to the reporting point of the FPS Economy.
Complaints must also be submitted to the appointed service provider’s mediation service. If a solution cannot be provided within a reasonable period, the financial services ombudsman may be involved. This service will issue a binding opinion.
As you can see, there are many factors to take into account and it is important to document your application properly.
Do not hesitate to contact your Trusted Advisor if you have any questions about this and/or would like to receive support in connection with your application.
[1] As described in Article III.17 1 of the Code of Economic Law.
[2] CSAM is a system for identity and access management within e-government. The system was set up by the Belgian federal government. It is used for the identification, authentication, authorisation and management of mandates or proxies. CSAM is the gateway to numerous different government services.