Are the Banks Taking Part in the Repression?

Are the banks taking part in the repression?

The unjustified closure of bank accounts, by the banks themselves, appears to be a new tool at the edge of legality for persecuting spiritual movements.

By the CICNS (July 2005)

A new weapon in the anti-cult crusade?

French banks, by common accord, have just refused to open a current account for a spiritual association.

Despite requests, none has provided any explanation. Did they act in concert? Did they receive similar instructions at the same time?

The movement in question referred the matter to the Banque de France on the basis of the Monetary and Financial Code:

MONETARY AND FINANCIAL CODE

(Legislative Part)

Section 1: The right to an account and relations with the customer

Article L312-1 (Law no. 2001-1168 of 11 December 2001, art. 13 I 1º, Journal Officiel of 12 December 2001)

(Ordinance no. 2005-429 of 6 May 2005, art. 44, Journal Officiel of 7 May 2005)

(Law no. 2005-516 of 20 May 2005, art. 16 IV, Journal Officiel of 21 May 2005)

Any natural or legal person domiciled in France who does not have a deposit account has the right to the opening of such an account at the credit institution of their choice or with the financial services of La Poste.

The opening of such an account takes place after the submission to the credit institution of a sworn statement attesting that the applicant holds no account. If the chosen institution refuses, the person may refer the matter to the Banque de France so that it designates either a credit institution or the financial services of La Poste.

Credit institutions or the financial services of La Poste may limit the services linked to the opening of a deposit account to basic banking services only under conditions defined by decree. Furthermore, the body designated by the Banque de France, when limiting the use of the deposit account to basic banking services, carries out its mission under pricing conditions fixed by decree.

Any decision to close an account on the initiative of the credit institution designated by the Banque de France must be the subject of a written and reasoned notification addressed to the customer and to the Banque de France for information. A minimum period of forty-five days must obligatorily be granted to the account holder.

These provisions apply to persons under banking prohibition.

Nota (1): Law 2005-516 of 20 May 2005, art. 16 V:

1 - Until their maturity, investments made in accordance with the provisions of article 15 of the aforementioned law no. 90-568 of 2 July 1990, in the version in force until the date of publication of the present law, remain governed by those provisions.

2 - The provisions of I to IV enter into force on the date of the transfer provided for in 1 of II.

Nota (2): Law 2005-516 of 20 May 2005, art. 16 IV: In the first and third paragraphs of article L. 312-1, the words “financiers de La Poste,” are deleted. Words not found.

The Banque de France therefore required La Poste (… which is not a bank! certain transactions, such as transfers of funds abroad, are not possible at La Poste) to open an account for this movement. But might not the interminable delays and the promise of an account with reduced options be aimed at forcing certain associations to cease their activities?

All this is of course at the border of illegality, since it is a matter of playing with the words of legal texts so that this situation can be presented as entirely rational.

Blacklists and financial intelligence

We wonder in particular about the possibility that French banks may have received, by way of lists at the disposal of French banks, an “instruction” to cease all collaboration with the spiritual movement in question (we are not speaking here of one of those movements the media feast on; this one is not even on the list of the 1996 parliamentary report. This association wishes to remain anonymous).

There is indeed a confidential list published by the FATF at the disposal of French banks, which records the names of countries, organisations or persons who may be behind “embezzlement, banditry, dirty money, drugs, arms trafficking, prostitution, cults…” (and this even though the Commission nationale de l’informatique et des libertés (CNIL) confirms the prohibition on publishing lists of sensitive individuals, read on their site). A French financial intelligence unit, TRACFIN, created in 1990, analyses banking operations (1) and, by putting bankers under pressure, often leads them to exclude customers without further ado in order to head off trouble a little hastily. The Directorate-General for Competition, Consumer Affairs and Fraud Control (DGCCRF) is also very active in the fight against spiritual minorities, which it suspects of feeding the underground economy (their arguments, which aim to lump every spiritually-oriented endeavour together, are drawn from the usual reservoir of commonplaces).

If an association is judged “non grata” or receives significant funds from abroad, it risks finding itself in this situation of exclusion. With bank CEOs threatened with heavy personal sanctions, unjustified exclusions are likely to become more and more numerous.

The CICNS would like to gather the testimonies of other movements that have suffered the same fate and is preparing to alert the public authorities to this question. [email protected]

The right to a bank account: a right open to everyone… extract from the site http://www.paris.fr/

Having a bank account is a right open to every person residing in France, provided they can prove their domicile and identity. This is what is called the “Right to an Account” (Droit au Compte), and this right is enshrined in law. Moreover, the opening of such an account gives access to basic banking services whose cost is borne by the bank.

The Fédération Bancaire Française wishes to make this right better known and benefits in this endeavour from the active support of the Mairie de Paris.

In Paris, apart from the banks themselves, the persons concerned have two sources of information on the subject of the right to an account:

• the practical-information website www.lesclesdelabanque.com, which gathers all the useful information for better understanding and using the bank and finding one’s way around money matters.

• a mini-guide “Le droit au compte” published by the Centre d’Information Bancaire. It is available in the district town halls.

How to benefit from the right to an account?

If a person without a bank account does not manage to open one, the bank that refused the opening will give them a certificate of refusal containing all the information needed to benefit from the right to an account, including the address of the nearest Banque de France.

With this document, the person will there obtain the official designation of a bank for the opening of a deposit account within the framework of the right to an account.

How to access basic banking services?

When an account is opened within the framework of the right to an account, it automatically gives access to a set of services allowing it to operate. These services are free for the customer.

The basic banking services have been defined by decree.

They are:

• the opening, keeping and closing of the account;

• one change of address per year;

• bank account identity statements (RIB), as needed;

• the domiciliation of bank transfers;

• the monthly dispatch of a statement of the operations carried out on the account;

• the execution of cash operations;

• the cashing of cheques and bank transfers;

• cash deposits and withdrawals at the counter of the body holding the account;

• payments by direct debit, interbank payment order (TIP) or bank transfer;

• means of remotely consulting the account balance;

• a systematic-authorisation payment card, if the credit institution is able to issue one, or, failing that, a withdrawal card allowing weekly withdrawals at the credit institution’s cash machines;

• two banker’s cheques per month or equivalent means of payment offering the same services.

To find out more: www.lesclesdelabanque.com - Site of the Fédération Bancaire Française Mini-guide “Le droit au compte” - in PDF format (97 KB)

(1) Since the law of 12 July 1990, in the case of a deposit of doubtful origin exceeding 10,000 euros, the financial institution is required to file a “declaration of suspicion” with TRACFIN, the body for processing intelligence and action against clandestine financial circuits. TRACFIN then analyses the banking and accounting movements to determine whether the flows may derive from money laundering. When elements suggest this possibility, TRACFIN brings the matter before the public prosecutor. It is likely that, since the fight against terrorism and the anti-cult laws, the threshold has been lowered.

Read also an in-depth article on the question at http://www.tariq-al-halal.com/article201.html