Prime Minister Dmitry Medvedev at the meeting of the consultative Council on foreign investments (FIAC), discussed with officials the possibility of amending the Civil code (GK) which would allow banks to close accounts of customers unilaterally, writes RBC with reference to two sources familiar with the discussions.
Innovation should make life much easier for the bankers who now bear high costs to service such accounts. It is expected that the amendments will be distributed to the accounts of legal entities and individual entrepreneurs. “Yesterday at the Advisory Board discussed the unilateral closure of accounts. Central Bank and MAYOR oversee this issue,” – said the source publication.
One of the participants of the FIAC working group on the development of the banking sector and financial markets, said that changes are proposed to article 859 of the Civil code, which determines the termination of the Bank account agreement with legal entities.
In the current version, the Bank may refuse the execution of the account contract unilaterally in the absence of cash transactions and cash on it for two years. The Bank must warn the client of termination in writing. The contract shall be terminated two months after the Bank sent a warning, if the account of the customer for the period the money has not been received.
The proposed changes are that the parties will be entitled to provide the Bank account agreement the Bank’s right to unilaterally terminate the contract in the absence of transactions on the account during the period about which the Bank and the customer agree initially – even if the money in the accounts is still there. On closure of the account will need to pre-notify the client, the balance of funds will be returned according to its instructions.
The legislation significantly restricts the rights of banks. This attack all listed in the law – the absence within two years of funds in the account and operations on it, as well as a shortfall of funds to the account after the warning of the Bank in practice takes place only in a few cases, say market participants.
As a rule, on the customer’s account the money is there. In their absence, after receipt of the letter from the Bank, at the expense often comes a new amount, forcing the Bank to start the whole procedure from the beginning once the account balance reaches zero again. While the ability to withdraw funds from the account in payment of commissions for the Bank is also limited. As a result, funds are frozen for many years, the newspaper writes.
The development of the final version of the bill currently, the Ministry of Finance, Ministry of economic development, the Ministry of justice and the Bank of Russia with the participation of the banking community, said the publication of the representative of the press service of the Ministry of Finance. According to him, to prepare such amendments to the Civil code of the Department assigned by the letter of the government apparatus.
The results of consideration of amendments by the representatives of the banking community, as the analysis of the burden on banks due to existing regulations, the Ministry has not been received, said to journalists the assistant to head the MAYOR Elena laskina. In this work to simplify the procedure for closure of accounts by banks is conducted according to the instructions of the first Deputy Chairman of the government, which were given following the meeting of the Executive Committee of the FIAC on 3 June, she added.
In early September, the journalists of “Kommersant” wrote that the Ministry of Finance is preparing amendments to the Civil code, which will make it easier for banks procedures for closing customer accounts unilaterally. This work is carried out by the Ministry of Finance on behalf of the government together with the Central Bank, the economy Ministry and with the participation of representatives of the banking community, noted the publication.
Among the innovations of the journalists singled out three major initiatives. First – permission to close unilaterally dormant accounts with the remnants of funds as legal entities and natural persons. Now this account, the Bank can not close unilaterally, even if the account holder does not use them for many years.
The second innovation is to allow banks to close accounts with a zero balance, which in the course of the year there is no movement (now more than two years). Third to the right of the Bank to terminate an agreement with the client unilaterally, if the client violates the provisions of the law on counteraction to legalization of criminal proceeds, giving the client a month or lesser period provided in the contract. Now banks stop operations in the account immediately after the detection of violations, but the closure of the accounts occurs only 60 days after notice to the client.
Despite a willingness to support in General the proposals of the bankers, the Finance Ministry pointed to the need for their further elaboration and negotiation with relevant agencies, particularly the CPS.
The problem of abandoned accounts relevant to all banks as “half-dead” accounts complicate the work of the banking systems, weight statements, increased operating costs, such as the execution of requests on and bailiff, seizures, updating client documents on AML/CFT inspections database “terrorists”, etc.