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The call for stronger safeguards underlines growing pressure on regulators to define banks’ obligations, protect access rights and prevent the misuse of reputational risk.
In a written question to the Commission, right-wing MEPs Fernand Kartheiser, Stephen Nikola Bartulica and Elisabeth Dieringer criticised what they view as a rise in debanking practices by banks and payment firms across the EU.
The three MEPs, from Luxembourg, Croatia, and Austria, described debanking as a “recent phenomenon” that is affecting both individuals and organisations in the EU, “often without explanation or avenue for appeal.”
The lawmakers argued that account closures can have “highly disruptive” consequences for livelihoods and families dependent on the affected accounts.
They asked the Commission whether it is aware of the trend and if it has engaged with stakeholders to develop tools “that safeguard customers’ banking rights from political repression.”
They also raised the possibility of stricter rules on arbitrary account closures, such as requiring prior judicial authorisation, ensuring transparency and setting out clear procedures for reporting, communication and appeals.
The MEPs expressed concern over European banks’ reliance on broad concepts such as “reputational risk” when deciding to terminate services. They argued that such terms should be more precisely defined to prevent politicisation and to ensure that politically exposed persons (PEPs) and organisations are not unfairly targeted.
An established issue
This is not the first time that the issue of debanking has been raised in the European Parliament.
In September 2024, Vilija Blinkevičiūtė of the centre-left Socialist & Democrats group raised concerns that, despite existing rules, European banks were frequently refusing applications from non-residents, imposing conditions such as buying additional services and charging higher fees. She argued that such practices risk undermining financial inclusion and contravening EU law.
Research published in 2023 by the Belgian government found that non-residents face persistent obstacles in accessing basic banking and payment services. Both non-EU nationals and EU citizens were shown to struggle to open or maintain accounts, with stricter anti-money laundering (AML) rules making it especially difficult for newcomers lacking full identity documents.
The report recommended legal reforms to guarantee the right to a basic payment account, establish clearer identification rules, mandate written explanations for refusals, and strengthen supervisory checks. It also urged Belgium to push for EU-level reforms.
Possible EU responses
The MEPs’ written question highlights gaps in EU law, where access to bank accounts and closures are only partially regulated and not fully harmonised. If the Commission were to act, it could update or extend existing frameworks.
One option would be to amend the Payment Accounts Directive (PAD) to broaden access rights and introduce clearer procedures and appeal mechanisms.
Currently, PAD guarantees consumers legally resident in the EU access to a basic account, but it excludes businesses, NGOs and politically exposed persons (PEPs).
Potential amendments could expand coverage, require detailed explanations and notice periods before closure, and introduce supervisory oversight. However, the Commission has previously ruled out such amendments, as covered by Vixio in 2023.
Alternatively, adjustments to EU anti-money laundering (AML) rules could restrict the use of “reputational risk” as a blanket justification for closures.
The Commission could issue guidance or delegated acts under existing frameworks, rather than proposing entirely new legislation. The newly established Anti-Money Laundering Authority (AMLA) in Frankfurt might also provide guidelines, though its immediate focus is likely to remain on sanctions enforcement and crypto oversight.
Global approaches to debanking
This issue of debanking has attracted significant attention around the world in recent years, especially in the US.
On August 7, 2025, US President Donald Trump signed an executive order intended to curb “politicised or unlawful debanking.”
It directs regulators to remove references to “reputation risk” from supervisory guidance and ensure banks make decisions based on objective, risk-based standards rather than political or religious views. Agencies must review past cases, reinstate wrongly debanked clients, and take enforcement action, including fines, against institutions found to have discriminated.
The Office of the Comptroller of the Currency (OCC) in the US is implementing the order by factoring banks’ debanking practices into licence applications and Community Reinvestment Act assessments.
It has requested information from major banks in the US, updated its complaint system and pledged to act against misuse of customer financial records. The OCC has already removed references to reputation risk from guidance and intends to propose similar changes to regulations.
In April 2025, the UK government announced new rules requiring banks and payment providers to give at least 90 days’ notice and a written explanation before closing an account or terminating services.
The measures, applying from April 2026, are intended to protect individuals and small businesses from sudden, unexplained closures, giving them time to challenge decisions or switch providers.
UK ministers have framed these reforms as strengthening protections against discrimination and ensuring continued access to essential banking services. Their implementation in April 2026 will test how effectively such measures balance financial stability with individual rights.
