EU Commissioner McGuinness: Introductory remarks on IBAN discrimination

Thank you, Alexandra and colleagues, a very good morning.

I’m tempted to say that you know, with all that’s happening globally and geopolitically, this is not an issue that is high on the agenda. But it’s one of those issues that I think we can solve and it’s also an illegal practice, this concept of IBAN discrimination. And I think you’re right in saying this is an issue close to my heart because I think it’s important that we tackle small things that make a difference, a big difference to people across the European Union. And I think if we can tackle small things then the bigger things are easier addressed.

So I come to this with my experience of being a Member of the European Parliament. And indeed I wrote to my predecessor, now colleague, in the Commission, Commissioner Valdis Dombrovskis, about this issue.

So let me just continue about the reason that this is important to me and indeed to the Commission. And I commend Eric and his colleagues for the work they have done and are going to do. Because I know the Commission worked really hard on this. I got a very good reply from Valdis Dombrovskis.

But the truth is even with all the work we’ve been doing trying to solve this, IBAN discrimination shouldn’t be happening, but it is, and too frequently. So nine years after the deadline for SEPA implementation, there are still companies and public administrations refusing to make or receive euro payments involving non-domestic accounts. And frankly I think we all agree that this is unacceptable.

But it also, as has been referenced, is completely illegal and it is the very opposite of what SEPA is about. I want to put an end to this illegal practice, once and for all, and preferably before the end of this mandate. I know time is short, but I think we will use it well. But I can’t do this alone. Indeed, our services can’t do it alone.

We are counting on your support. This problem of IBAN discrimination is a problem for individuals and businesses. A bank account in any member state can be used to pay bills in any other member state. If you move from one country to another you should not have to open an account in that country.

Now some citizens know their rights and push for them. Others who are not so aware will open another account even though it’s not necessary. And frankly, I think that many people are completely unaware of this freedom that they should enjoy in the single market.

This problem of IBAN discrimination is also impacting companies, including fintechs, who are not able to fully implement their business model. And indeed, these companies rightly come to me to complain – and I fully understand why they are complaining. And indeed, I know their position will be presented at today’s meeting and I look forward to that.

So again, on our side, we’re doing a lot to combat IBAN discrimination. We are taking enforcement actions, like infringement procedures. My services are in regular and ongoing contact with the national authorities primarily responsible for enforcing the SEPA Regulation.

I am sure most of them are present today. There is also a communications element to this topic. And we are using the media to raise awareness and encourage citizens and companies to complain to national authorities. And I would just say that we are stepping up our communication efforts.

We are planning a new campaign, coming soon, targeting companies – and sometimes the public sector – to remind them of their obligation not to discriminate when it comes to IBAN numbers.

Now, we also want to increase awareness among groups who may be more likely to face IBAN discrimination, and here I think of Erasmus students, expats, or international researchers. Let’s try and make their lives easier, particularly when it comes to their financial situation and their bank accounts.

We have achieved, I want to acknowledge, some positive results by reaching out to relevant Member States and, of course, through enforcement action. Some Member States made changes to their national laws, for instance tightening the sanctions on offenders or launching information campaigns.

Now, that said, we know the problem persists and this has to change. We continue to receive complaints from citizens and businesses. And here we do need your help. I think like me, I know you are determined to put an end to IBAN discrimination.

Many of you have taken action, sometimes imposing heavy fines. And that’s really good. But it’s not good enough. We haven’t gone far enough to address this problem, so we do need to step up. I encourage the Member States where IBAN discrimination remains prevalent to take even more ambitious action to eradicate this practice.

Now of course none of this is easy, but frankly we have had time to do this, so I’m afraid I’m not going to listen to excuses or reasons why. This should not be happening. I would say that sometimes it’s the fault of legacy IT systems which are not adapted to foreign IBANs, although I hate to use the word foreign in the context of a single market, frankly, but these are the words we use. And I think that the technology or the IT system issue, it is an explanation but it’s not an excuse.

These companies and in some cases public administrations are on the wrong side of the law. And so they risk being exposed to heavy fines. I think Eric will agree with me and indeed the entire FISMA team would agree when I say that IBAN discrimination is really a stone in our shoes, and it’s certainly a stone in my shoe, which is very uncomfortable.

So let’s try and remove that stone so we can all walk properly. We have time now to do something about it. This morning is really important because it marks a signal, and I hope you’re receiving that signal loud and clear from the Berlaymont, that this practice has to end.

It should never have prevailed for so long and therefore there are no excuses, we just want to hear the actions. And I will look forward to listening to the experiences of different Member States in the presentations. But we will be judged not by our words today but by the actions that follow. I would also say that this is such a topic of interest to me, that while you won’t see or know that I’m listening, I will be staying with this item. Because I do want to hear what is happening in Member States and indeed some of the reasons why things aren’t happening fast enough.

But I would stress again, at this stage, I don’t think we need to hear more excuses or reasons why. It is better that we say yes, there is an issue to be dealt with in some Member States more than others, and we talk about how we’re going to address that. And then we have good news to say to our citizens in the run-up to elections to the European Parliament. Because frankly this to me is like the roaming charge issue, which is so well known and welcomed by citizens, I mean this should be the same.

This should make their financial lives easier where people move within the single market. So good luck with the deliberations and rest assured I’m all ears and will be listening to the presentations.

Thank you and have a good morning.

Source – EU Commission