On 20 January 2020, the De Nederlandsche Bank (DNB) informed the public that as of the same day, a legal sanction regime applies in the Netherlands for violations of the prohibition of IBAN discrimination.
31 Jan 2020
IBAN discrimination thereby refers to the case when European payments are refused due to the origin of the bank account. Such IBAN discrimination is prohibited because it undermines the smooth functioning of the European payment market. The prohibition exists since 2014, the year of the transition to the Single European Payments Area (SEPA). A new feature as of now is that DNB will be authorized to impose an order subject to a penalty or a fine if a payer or recipient refuses to accept a payment to or from a bank account number from another European foreign country. Before proceeding to do this, DNB will however first warn the institution to end the violation.
This article was originally published in the January edition of REGWATCH. Read the full edition covering the following jurisdictions:
- European Union
- Hong Kong
- United Kingdom