Companies too are now entitled to a bank account

Companies too are now entitled to a bank account

A bank account is crucial for a company to be able to participate in economic transactions. As stated in our previous blog post of February 6th 2023, it appears that in practice various (categories of) enterprises, including non-profit organizations, experience difficulties in obtaining or maintaining a bank account. In such a case, these enterprises will (soon) be able to apply for a basic banking service. On 26 January 2023, the Royal Decree establishing the basic banking services chamber entered into force. This chamber must ensure that the law of 8 November 2020 on the basic banking service for enterprises, which was inserted in Book VII of the Code of Economic Law, can (finally) also be applied in practice.

Who is entitled to the basic banking service?

Individuals already have the opportunity to call on the basic banking service for some time, but now the basic banking service is also being made available to enterprises. The term 'enterprise' covers natural persons engaged in an independent professional activity (in a so-called 'sole proprietorship'), enterprises, associations and foundations, as well as certain other organisations without legal personality.

Any enterprise registered in the Crossroads Bank for Enterprises (or applying for such registration) is entitled to a basic banking service when at least three banks have refused to offer a bank account and a minimum service.

What is the procedure concerning the basic banking service?

First of all, the enterprise will have to turn to three different banks of its choice to obtain one or more payment services, i.e. the collection and deposit of cash into a current account, the execution of transfers (including ongoing payment orders) and direct debits and/or the execution of payment transactions through a payment instrument. If one or more of these payment services have been refused three times, the enterprise in question may submit an application for a basic banking service to the Chamber of Basic Banking Services. The Chamber of Basic Banking Services is set up within the federal authority for the Economy (FOD Economie/ SPF Economie) and is charged with examining and assessing the applications for a basic banking service and with designating a bank to make the basic banking service available to the company.

The application shall be made in writing, by means of a form made available on paper or electronically by any bank which has refused the enterprise as a client.

The application form contains a declaration on honour of the company that it does not already have a payment account with a Belgian or European Union credit institution. The application form also contains a confirmation, to be supported by the necessary supporting documents, that the enterprise has been refused payment services at least three times or, where appropriate, that it has been informed that its accounts will be cancelled.

Upon receipt of the application, the Chamber of Basic Banking Services will seek the advice of the financial information processing unit (‘CFI’, 'Cel voor Financiële Informatieverwerking/ Cellule de traitement des informations financières’). After a positive opinion or if CFI has not responded within sixty calendar days, the Chamber of Basic Banking Services shall designate a bank in Belgium to provide the basic banking service to the enterprise. The designated bank is in principle obliged to offer the basic banking service to the enterprise within ten working days after the notification of the decision of the Chamber of Basic Banking Services.

The designated bank must at least allow the company to make transfers (including ongoing payment orders), direct debits, and payment transactions via a payment instrument worldwide. The services must be offered at the counter or at ATMs and also via the bank's internet platform. In addition, the credit institution must offer the company the possibility to withdraw cash within the European Union and deposit cash in a current account. The designated credit institution may not offer credit or loans to the enterprise. Payment transactions must only be carried out if there is sufficient money in the current account of the company, transactions that lead to an overdraft must be refused.

Can the basic banking service be refused?

The designated bank may refuse the application for a basic banking service in certain cases. For example, the application may be refused if a member of the board, a person in charge of the management, or, where appropriate, a member of the executive committee has been convicted of fraud, abuse of trust, fraudulent bank breach or forgery. The application shall also be refused if the company provides incorrect information in response to the bank’s questions in relation to anti-money laundering legislation or if the refusal complies with anti-money laundering legislation. In order to limit the risk of refusal under the anti-money laundering legislation, and as already mentioned in our blog post of 6 February 2023, it is important that the company complies with all filing and publication obligations (Annexes to the Belgian Official Gazette, CBE, UBO register). Finally, the application can also be refused if the company has opened another current account in Belgium or the European Union, allowing it to use basic banking services.

When will you be able to apply for the basic banking service?

The Chamber of Basic Banking Services was established by Royal Decree of 16 December 2022. The Minister of Economy is empowered to appoint the members of the Chamber. Since the members of the Chamber of Basic Banking Services have not yet been appointed by the Minister, it is not yet possible to submit an application for a basic banking service to the basic banking service. The FPS Economy expects that the members of the Chamber of Basic Banking Services will be appointed by the Minister in the coming period.

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If you have any questions regarding this topic, please contact Yvette Verleisdonk (yvette.verleisdonk@aurionlaw.be), Sarah Verschaeve (sarah.verschaeve@aurionlaw.be), Lisa Bueken (lisa.bueken@aurionlaw.be) or Jan Van Dam (jan.vandam@aurionlaw.be).