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Basic banking service for enterprises

Enterprises are also entitled to a basic banking service. In this article, you can read all about it.

For various reasons, some enterprises may face difficulties in opening a current account. Therefore, the basic banking service for enterprises and diplomatic missions was introduced.

 

What does the basic banking service entail?

 

Banks are required to offer a guaranteed minimum service for enterprises so that enterprises and the self-employed can still obtain a current account with a limited range of services (including a debit card) enabling them to carry out financial transactions and participate in economic life.

 

Which transactions?

 

With that basic banking service, you can do the following on behalf of your company with the current account:

  • deposit and withdraw cash
  • transfer money into an account
  • carry out standing orders
  • carry out direct debits
  • pay with a payment card (in shops or online)
  • use the digital channels of the bank

The current account is offered in euros by default, but you can also request a current account in US dollars (note: your company or diplomatic mission will then not be able to deposit or withdraw money).

You can only do the above-mentioned transactions if there is enough money in this current account.

Is my enterprise entitled to the basic banking service?

 

Every business that is established in Belgium and registered in the Belgian Crossroads Bank for Enterprises or that has requested a registration, is entitled to the basic banking service.

The enterprise or diplomatic mission must have been denied minimal service by at least three different banks to be able to claim the basic banking service.

 
What falls under the definition of 'entreprise'/'onderneming' in the sense of article I of Book I of the Code of Economic Law (CEL)? The words “onderneming”/“entreprise” refer to:
  • a natural person carrying out a professional activity in a self-employed capacity (such as a one-man business, a company manager, an artist);
  • a legal entity (a company, non-profit organisation or foundation);
  • any other unincorporated organisation (such as a partnership).

Diplomatic missions as referred to in Article 3 of the Vienna Convention on Diplomatic Relations of 18 April 1961 are also entitled to a basic banking service.

What does not fall under the definition of 'entreprise'/'onderneming' in the sense of article I of Book I of the Code of Economic Law (CEL)? The following entities are not considered as 'entreprise'/'onderneming':
  • Any unincorporated organisation that does not have a distributive purpose and does not in fact make distributions to its members or to persons exercising a decisive influence on the organisation's policy (e.g. a de facto association);
  • Any legal entity governed by public law that does not offer goods or services on a market;
  • Public authorities: the Federal State, the regions, the communities, the provinces, the assistance zones, the pre-zones, the Brussels Agglomeration, the municipalities, the multi-municipal zones, the intra-municipal territorial bodies, the French Community Commission, the Flemish Community Commission, the Joint Community Commission and the public social welfare centres.

Which banks provide the basic banking service?

 

The Chamber of Basic Banking Services can only require "systemically important" banks to offer a basic banking service to an enterprise or diplomatic mission:

  • Argenta
  • Axa Bank Belgium
  • Belfius Bank
  • BNP Paribas Fortis
  • Crelan
  • ING Belgium
  • KBC Bank

A credit institution is appointed as a basic banking service provider through a procedure at the Chamber of Basic Banking Services of the FPS Economy.

 

What procedure should my enterprise follow?

 

If your company was refused 3 times (by three different Belgian banks) when requesting to open a bank account, you can submit an application to the Chamber of Basic Banking Services of the FPS Economy.

Procedure to be followed Procedure that the company must follow to obtain a basic banking service:
  • You can apply for the basic banking service by contacting the FPS Economy’s Chamber of Basic Banking Services via the online application form.
  • You will also receive a free paper version of the application form from the credit institution that refused to provide the minimum service. The paper version of the application form can only be used if you are not able to use the online application form. Once you have submitted the application form to the Chamber of Basic Banking Services, they will check if your file contains all the necessary documents[1] to admit your application.
  • Once your application is declared admissible, the Chamber of Basic Banking Services submits the file to the Financial Intelligence Processing Unit, which will issue a mandatory (and confidential) opinion.
  • After obtaining the opinion, the Chamber of Basic Banking Services has two months (60 calendar days) to take a decision on the appointment of a basic banking service provider. You will be notified of the Chamber of Basic Banking Services’s (positive or negative) decision by a registered letter.
  • As part of the additional risk mitigation measures for certain enterprises [2] [3] or risk mitigation measures on the use of cash or US dollar, the Chamber of Basic Banking Services may ask you to provide documents or information before deciding to appoint a basic banking service provider.
  • The basic banking service provider must provide the basic banking service within 10 business days. However, this period may be extended if the company has not provided the bank with the necessary documents or because of the bank's compliance with its obligations under the law of 18 September 2017 on the prevention of money laundering and the financing of terrorism and on restricting the use of cash. You will be notified in writing in this case.
 

[1]These include, in particular, the following documents: a complete application form with information on the enterprise, three substantiated refusals from Belgian banks, a declaration on honour that the enterprise or diplomatic mission does not already have a basic banking service or payment account and, if necessary, proof of cancellation of existing accounts.

[2] Specific additional risk mitigation measures apply to all categories of companies referred to in Article 5, §1, of the Law of 18 September 2017 on the prevention of money laundering and the financing of terrorism and restricting the use of cash, which were assigned a basic banking service provider by the Chamber of Basic Banking Services: conditions of reliability, extract from the criminal record, list of usual counterparties that allows the origin and destination of funds to be accurately determined.

[3]Specific additional risk mitigation measures also apply to diamond dealers.

How much does the basic banking service cost?

 

The credit institutions appointed by the Chamber of Basic Banking Services set their own price for the basic banking service. It may depend on the risk involved in providing an account to the enteprise. The number of electronic transactions is unlimited.

 

Can a basic banking service provider still reject or terminate the provision of the basic banking service?

 

Upon receipt of the designation by the Chamber of Basic Banking Services, the bank may refuse to provide this service in certain cases.

When can a basic banking service provider refuse to provide the basic banking service? In the following situations:

  • Your enterprise already has a basic banking service or another current account with your bank or another bank.

  • Your application for the basic banking service is a violation of the law of 18 September 2017 on the prevention of money laundering and terrorist financing and on the restriction of the use of cash or you have provided incorrect information in this regard.

  • A member of your business's statutory governing body or the person in charge of its active management or a member of the executive committee has been convicted of fraud, abuse of trust, fraudulent bankruptcy or forgery.

  • If your enterprise is one of the companies for which specific risk mitigation measures exist and you do not comply with them or do not provide the necessary information about them [4].

  • If you request transactions in US dollars and your company does not comply with certain conditions or does not provide the necessary information about them [5].

  • If your company or diplomatic mission fails to comply with restrictions necessary to limit risks associated with the use of cash [6].

 

[4] Articles 10 and 11 of the Royal Decree dd. 16/12/2022 on the basic banking service for enterprises. [5] Article 14 of the Royal Decree dd. 16/12/2022 on the basic banking service for enterprises. [6] Article 12 of the Royal Decree dd. 16/12/2022 on the basic banking service for enterprises

Even after the basic banking service was opened, the bank can terminate the provision of the basic banking service in the following situations:

  • In the cases mentioned above.
  • If the account is used for illegal purposes.
  • If no payment transactions have been made on the payment account for more than 12 consecutive months.
  • If you have provided incorrect information to obtain the basic banking service.
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