The World Assembly (WA),
Believing that a bank account is key to improving the living standards of WA inhabitants by offering access to modern financial services for free, avoiding pricier alternatives such as pawn shops or check cashing outlets, and broadening access to microcredit;
The WA hereby enacts as follows:
- Definitions.
- "Bank" means an entity that offers savings and lending products to inhabitants and SMEs in a WA state. This includes similar entities such as credit unions.
- "Cash" includes physical coins, notes, as well as other physical monetary instruments used by that WA state.
- "Inhabitant" includes anyone with a clear rationale for a bank account in that state. This includes, as examples, citizens, residents, guest workers, seafarers, refugees, and diplomats.
- "Inhabitant" excludes any not deemed legally competent in that WA state.
- "Microcredit" is defined to include loans of relatively small amounts to inhabitants and SMEs to help them achieve their financial or personal targets. such as developing new businesses.
- "SME" means small and medium sized enterprises. This includes sole proprietors and smaller enterprises as defined by that WA state.
- Basic bank account("basic account" or "account"). A basic account must include the following features:
- Savings and deposits;
- Cash withdrawals;
- Cheque issuance and deposits;
- Convenient payment mechanisms such as various apps;
- Microcredit facilities (as defined in clause 6);
- Domestic interbank and intrabank transfers;
- Remittances to or from other WA states.
- Features.
- Each basic account (and related services) is provided free of charge. This does not affect margins or spreads for loans, foreign exchange, or other products outside of a basic account provided by the bank.
- No minimum deposit balance is required to open or maintain a basic account.
- If a state has reasonable levels of Internet access, a basic account must be accessible both online and offline.
- Sub-clauses (2)(b) or (2)(c) do not apply if that WA state does not use cash or cheques, respectively.
- Availability.
- Each inhabitant and each SME in a WA state is entitled to at least one basic account.
- Each WA state is to determine how basic accounts are provided, such as through which particular banks or if such accounts are the obligations of all banks.
- Know your customer requirements(KYC).
- No one may be denied from opening a basic account due to their circumstances, such as having a previous criminal record or having no fixed abode.
- An inhabitant having a duly issued identity document from that WA state (or a committee of the WA) is deemed to satisfy the KYC needs for opening a basic account.
- The preceding sub-clauses do not prohibit a bank from conducting additional KYC if the customer desires a deeper relationship, such as getting a loan from that bank, or for the bank to decline such a deeper relationship.
- Microcredit.
- A bank that provides basic accounts shall also provide microcredit loans via such accounts to inhabitants and SMEs.
- Each WA state may determine if microcredit loans are provided at market rates, or if subsidised loans are available, as well as the underwriting standards, terms, and conditions for such microcredit loans.
- Each WA state is required to incentivise banks to promote microcredit services to their customers.
- Other services.
- A bank may also provide loans or other services to customers via a basic account.
- The WA reserves the right to further regulate lending under clause (6) or sub-clause (7)(a).
- Technology.
- Each WA state is required to incentivise the use of technology in banking to the extent such technology is available in that WA state, such as online banking and payment apps, to reduce costs for bank customers.
- Each WA state is required to make reasonable efforts to make it more convenient for vulnerable inhabitants to bank, such as using more facilities friendly to those with physical challenges.
- Jurisdiction. Each WA state is responsible for interpretation and enforcement of this resolution.
