Press release relating to basic payment accounts

The CSSF reminds that the following institutions must offer consumers, on request, payment accounts with basic features, in accordance with Article 23 of the Law of 13 June 2017 on payment accounts:

• Banque et Caisse d’Epargne de l’Etat, Luxembourg;
• Banque Raiffeisen;
• BGL BNP Paribas;
• POST Luxembourg.

Moreover, the Banque Internationale à Luxembourg has also chosen to offer payment accounts with basic features.

Consumers legally residing in the European Union, including consumers who are not granted a residence permit but whose expulsion is impossible for legal or factual reasons, have the right to open and use a payment account with basic features with the above-mentioned institutions. Such a right applies irrespective of the consumer’s place of residence.

A payment account with basic features must include the following services:

• services enabling all the operations required for the opening, operating and closing of a payment account;
• services enabling funds to be placed in a payment account;
• services enabling cash withdrawals within the European Union from a payment account at the counter or at automated teller machines during or outside the concerned institution’s¹ opening hours;
• execution of the following payment transactions within the European Union:
  • direct debits;
  • payment transactions through a payment card, including online payments; and
  • credit transfers, including standing orders, at, where available, terminals and counters and via the online facilities of the institutions concerned.

Institutions offering payment accounts with basic features may refuse an application for opening of a payment account with basic features where a consumer already holds a payment account with an institution concerned in Luxembourg which allows him/her to make use of the services listed above (save where the consumer declares that s/he has received notice that this payment account will be closed).

It should be noted that an application for opening of a payment account with basic features may be refused when the consumer provides inaccurate or misleading information in the context of an application procedure for opening a payment account with basic features or when the institution with which such application has been made has reasons to suspect that the payment account with basic features would be used for illegal purposes.

The institutions concerned offering payment accounts with basic features open this account or refuse a consumer’s application for such an account without undue delay and at the latest 10 business days after receiving a complete application.

In the event of refusal to open a payment account with basic features, the institution concerned must immediately inform the consumer of the refusal and of the specific reason for that refusal, unless such disclosure would be contrary to objectives of national security and public policy or the Law of 12 November 2004 on the fight against money laundering and terrorist financing, as amended.

The aforementioned institutions must advise the consumer of the procedure to submit a complaint against the refusal, and of the consumer’s right to refer to the CSSF to challenge the refusal. On this occasion, they will provide the consumer with the relevant contact details of the CSSF.

Consumers may also contact the CSSF it they consider that the institution with which a payment account was opened unduly closed this account. The reasons for closing a payment account with basic features that are acceptable are listed in Article 29(2) of the Law of 13 June 2017 on payment accounts.

For complete information, reference is made to the Law of 13 June 2017 on payment accounts: Law of 13 June 2017 on payment accounts