No bank accounts for EU citizens in Sweden
Despite regulatory changes that were supposed to be implemented two years ago, citizens of EU countries are still reporting several problems with opening a basic bank account in Sweden.
New regulations clear criteria provided to the Swedish banks by EU institutions have not been enough to solve the difficult banking situation for EU newcomers. In Sweden, the majority of banks request rental agreements, work contracts and Swedish social security numbers all of which delay the process by months and have little to do with AML processes. According to an investigation, which included more than 100 respondents consisting of EU citizens residing in Sweden, 82% encountered difficulties with financial institutions.
As this situation effects a dedicated minority group of around 30,000 individuals migrating to Sweden yearly, asymmetrical treatment of EU citizens might be seen as discrimination. Hopefully, unintentional discrimination.
According to information provided by Europe Direct, the information network designated by the European Commission, any person legally residing in any EU country is entitled to open a basic bank account, even if one does not live in the country where the bank is established. However, difficulty in accessing bank accounts for EU citizens, who have migrated to other member states, has been a thorn in the eye of the freedom of movement of people, services and capital for years. As of September 2016, each of the 28 member states have been officially forced to adopt regulations that allow the opening of a basic bank account for any EU citizen with a national passport or an identity card independent of their place of residency.
"It took 18 months and 11 visits to different Swedish banks to open a basic bank account. Furthermore, in Sweden, no-bank account results in more severe problems than in other countries, as you do not have access to an e-identity solution and can not log on 90% of government services; what unnecessary has complicated my life."
More than 100 individuals from expat platforms provided their experience with opening a bank account in Sweden. Of these, 82% of survey participants indicated that they had a problem with opening a bank account in Sweden. The number increased to 85% after extracting the data of citizens of the EU and EFTA (Switzerland, Iceland, Norway) and problems reported after the implementation of the European Directive (2014/92/EU) into a set of Swedish regulations by September 2016.
Following the newest data from Eurostat on European migration, more than 30,000 individuals moved to Sweden in 2017 from other member states. Meaning that potentially the problem could have already affected at least 25.000 expats when extrapolating the results of EU citizens in Sweden.
"I had a Swedish social security number at the time but not a plastic card called 'Swedish Tax ID', which is issued by the tax authorities. One bank informed me that it's not possible to open a bank account without a Swedish ID card. Another bank claimed that I could open a bank account without it, but I would have to wait for an appointment for 3-4 months. I am an Irish citizen, and I moved to Sweden with employment."
A passport or an identity card issued by any of the member states of the EU or EFTA should count as sufficient proof of identification from a Know-YourCustomer (KYC) perspective. with limited exceptions such as if a person is a politically exposed person or the individual is placed on a sanction list. Banks are obliged to open a bank account for individuals who are citizens of EU or EFTA member states for individuals who meet proof of identification requirements and have a valid reason for opening a bank account.