In a significant development, Federal Minister of Economy and Employment Pierre-Yves Dermagne (PS) is spearheading legislative reforms to grant access to basic banking services for Belgians residing outside the EU for fewer than 10 years.
This initiative comes amid mounting grievances from several hundred Belgians, predominantly based in the Democratic Republic of Congo (DRC), who recently submitted a petition to the Belgian consulate in Kinshasa, highlighting the issue of banking exclusion faced by expatriates.
Dermagne has announced a legislative proposal to address this exclusionary practice. A spokesperson from the Federal Ministry of the Economy confirmed in a statement published in La Libre Belgique, "Progress is underway, with an amendment to the Code of Economic Law in the pipeline."
The banking challenge faced by thousands of Belgians abroad is not a new phenomenon. For months if not years, Belgian banks have been unilaterally and sometimes harshly closing accounts of expatriates residing outside the European Union. Often, such closures occur without explanation or recourse for the affected customers, posing significant challenges, especially for those managing assets in Belgium.
'Restore parity'
Banks commonly cite compliance with stringent anti-money laundering regulations as justification. However, legal expert Didier Chaval explained in La Libre Belgique that "Banks often overstep their obligations, which primarily involve administrative compliance rather than terminating client relationships."
Responding to mounting pressure, Dermagne has initiated steps to address these grievances. The proposed amendment to Article VII.57 of the Code of Economic Law aims to extend basic banking services to Belgian nationals residing outside the EU for less than a decade. Dermagne asserted, "This legislation seeks to restore parity between EU residents, who are entitled to basic banking services, and non-EU resident Belgians."
Under the proposed changes, banks will be prohibited from denying basic banking services to Belgians abroad for up to 10 years, barring exceptional circumstances such as suspected money laundering. However, critics highlight that the 10-year threshold may exclude long-term expatriates. Dermagne's advisors assert that while the duration is subjective, it's a crucial step in maintaining ties with Belgium.
The bill, which cleared its initial reading in late March, is scheduled for parliamentary voting before the dissolution of the current session on May 8th, with anticipated implementation by June or July. Dermagne expressed confidence, stating that the legislation is on track for approval, with a probability of "99.99%". He added, "The timing has been carefully calculated."
