This particularly thorny issue has become significant over the last twelve months, with banks closing several thousand accounts in one go. The Finance Commission (CSSF) has discussed the matter in depth with a view to providing solutions.
According to Wilwertz, who is head of communications at the ABBL, start-ups, Fintech companies, but also more complex structures such as investment funds, have been affected by the closures.
There are several reasons as to why a bank might do this, not least a change of strategy. Each bank has its own risk management department, which may decide to split from certain customers. Another problem is that anti-money laundering regulations can sometimes complicate procedures, with some entrepreneurs not having provided the necessary documents. In addition, compliance services are often understaffed, which can mean that it generally takes longer to open an account. At the same time, not all banks offer the same products which means that businesses might have a harder time finding an establishment that will cater their precise needs.
The ABBL has therefore decided to position itself as the intermediary of choice between supply and demand in the market. For instance, it hopes to build a dialogue with the surveillance commission of the finance sector (CSSF) regarding anti-money laundering regulations to see a proportional and consistent application of the standardised EU rules in Luxembourg. Another key idea by the ABBL is to provide training courses by the Chamber of Commerce’s House of Training to young entrepreneurs to make the necessary information more accessible.
The ABBL also believes that authorities could support the simplification of the process by, for example, authorising the opening of a bank account by adapting the law, as proposed by CSV MP Laurent Mosar. As of now, only natural persons can open an account in Luxembourg, and closing a private account also involves very specific procedures. Mosar, on the other hand, believes the law should be extended to legal or corporate entities.
