Dutch bank denies service to 3-year-old over Russian citizenship
Dutch banks are under fire for failing to deliver on promises to eliminate discrimination in financial services, according to an investigation by BNR. Allegations include accounts being denied to customers based on nationality, with even children being excluded.
Paul van de Pas, a Dutch father, was informed in October by Saxo Bank that he could not open investment accounts for his daughters, aged 3 and 5, who hold dual Dutch and Russian citizenship. The bank cited concerns over “extensive restrictions and reporting requirements” related to sanctions regulations. “It’s about your daughters,” Van de Pas said. “That hits hard.”
The incident is not isolated. Banks routinely refuse services to clients based on their nationality or place of origin. Earlier this year, Dutch banks committed to addressing discrimination in response to a KPMG report that highlighted widespread issues in the sector. However, Simon Lelieveldt, co-founder of the Human Rights in Finance foundation and an expert on financial regulations, said little has changed.
“Banks are inventing reasons to exclude people,” Lelieveldt said. “This comes at the expense of innocent people who just want a checking or investment account.”
The issue extends beyond Russian nationals. Raisin, a savings platform, explicitly bars individuals born in the United States from opening accounts, regardless of their nationality or tax status. Raisin’s application process does not even list “United States” as an option for birthplace.
Customers often struggle to prove discrimination, according to Ahmet Taşkan of the cross-cultural business association HOGIAF. He noted that the burden of proof lies with clients, who must demonstrate they are entitled to services. But then “when you provide the requested information, they say it’s not convincing or insufficient,” Taşkan said.
Banks often attribute denials to opaque algorithmic decision-making. A German customer, identified only as Nikolas, told BNR he was barred from overdraft privileges on his ABN AMRO account. When he inquired, a customer service representative reportedly said, “I can’t tell you exactly what the algorithm does, but it might be because you’re foreign.”
ABN AMRO declined to comment on individual cases but stated that since September 2023, nationality is no longer used as a criterion for granting overdraft requests.
Banks sometimes justify differential treatment based on legal obligations. European sanctions, for example, target individuals from specific countries, such as Russia. Additionally, anti-money laundering laws impose stricter rules for clients from “high-risk” countries.
However, Lelieveldt argues that banks go beyond legal requirements due to fear of fines and reputational damage. “They take more extreme measures than what the law dictates, harming many people in the process,” he said. “Sanctions only apply to individuals explicitly listed, not entire groups based on nationality.”
The Dutch Ministry of Finance has acknowledged the issue, stating that it is actively working with the financial sector and regulators to address discrimination. Updates on progress are expected this month. However, Lelieveldt criticized these efforts as superficial and argued that government policies are partly to blame. “Discrimination in the banking sector stems from legislation itself,” Lelieveldt said. “But there’s no serious introspection on this.”
Saxo Bank stated that it “in principle” accepts Russian clients but declined to comment on individual cases. A spokesperson attributed the refusal of Van de Pas’ daughters to complications following the bank’s merger with Binck Bank in July. The spokesperson added that Saxo is working to ensure Dutch clients with Russian backgrounds are accommodated but noted the process remains incomplete due to its complexity.
