In a country full of bureaucratic hoops to jump through, many foreign nationals with temporary residence status in Belgium are unable to open a basic bank account, despite having the necessary residence documents.
In recent years, the federal migration centre Myria has received numerous reports of people with temporary residence status who could not open basic bank accounts, whose bank account was blocked or who could not fix an appointment to open a bank account.
"Without a bank account, they cannot fully participate in social life. This exacerbates their social exclusion, preventing them from receiving wages, making purchases, or paying rent," the organisation stated in a research report on the topic.
Myria argues that everyone should be entitled to a standard bank account and said that when that is not possible, individuals should be able to rely on the "basic" bank account: "Everyone in legal residence has that right."
However, it said that banks often refuse their services without a written justification, which makes it difficult to file a complaint with the relevant authorities. "As a result, there is also an underreporting of this problem to the supervisory authorities."
More information, stricter sanctions
Myria makes several recommendations for the banking sector and ministers to ensure that "newcomers to the country" can also enjoy financial services.
It stressed the need for identification obligations to be clearer to the public and urged for a clear list of all the necessary documentation to be easily accessible: "This way, banks will also be obliged to follow these guidelines and there will be uniformity across all banks."
Myria also stressed the importance of information flow, asking for improved training for bank staff on identification requirements and different residence documents. They highlighted the need for clear information about banking in Belgium; this would include explanations of why an application for an account would be rejected and information about how to appeal.
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Myria recommended that the existing administrative and criminal sanctions for non-compliance with basic banking rules should be tightened and "effectively enforced" by the supervisory authority. "This is the only way the access to banking services for foreigners can be guaranteed."
