In recent months, Belgians living abroad have been sounding the alarm after their bank accounts were closed. As a result, a change in Belgian law is on the table that would ensure all Belgian nationals have access to basic banking services, wherever they live.
Belgium's Finance Minister Pierre-Yves Dermagne is looking to amend the Economic Law Code to extend the right to a basic banking service for all consumers of Belgian nationality, including those living outside the European Union and the European Economic Area. At present, the basic retail banking service is only guaranteed to Belgians living within the EU.
"Belgians living abroad are increasingly being excluded as customers by their banks, or fail to open an account with a Belgian bank," he said in a statement to The Brussels Times. "This obviously presents major problems."
Last summer, several local media reported that hundreds of Belgian nationals and EU citizens were seeing their Belgian bank accounts closed with the only justification being that they live outside the EU. This included people living in Cape Town, Beirut, Brazzaville and Kinshasa.
This exclusion from financial services has caused serious problems for affected customers. Some had for decades put money into the accounts while others needed their account in Belgium to receive pensions, rent from properties they were letting in Belgium, or send money to their children.
Additional red tape
Banks can cancel a contract without needing to justify themselves. Offering services outside the EU entails additional obligations under anti-money laundering legislation, which makes it less attractive to offer accounts to citizens abroad. But the abrupt closure of accounts meant that customers were left powerless and with no right to appeal. This resulted in them calling on politicians to find a solution.
Dermagne responded to these calls by taking steps to ensure that these Belgian expats are no longer excluded from banking services. "To combat exclusion from banking services we are now providing an extension of the basic banking service. From now on, banks will have to provide a guaranteed service to all Belgians, wherever they live in the world."
His spokesperson told The Brussels Times that the proposal will be discussed in the Chamber Committee on Economy on Thursday. As the initiative came from the majority, its approval is as good as secured. The final vote will take place at the beginning of May in the plenary session of parliament.
France recently changed its Monetary and Financial Code to allow any French national, even those living outside the country, to have a bank account in France. If a bank refuses, the Banque de France can force a credit institution to open an account for the applicant.
