Affirming previous resolutions on helping those underbanked, such as GARs 474, 625 and 686;
Noting that some inhabitants of WA states may still lack access to bank accounts, saddling them with higher cost alternatives such as check cashing services or remittance agents;
Desiring to further expand the right to a bank account in order to help inhabitants;
The WA hereby enacts as follows:
Definitions.
"Authority" means one or more entities designated by a WA state to enforce and interpret this resolution.
"Bank" means a financial institution providing retail banking services and duly regulated by that WA state, and for convenience also includes institutions performing similar functions such as credit unions and savings associations.
"Inhabitant" includes anyone with a legitimate rationale for a bank account in that state, such as a resident of that state, an authorized guest worker, an accredited diplomat, a seafarer employed by a shipping company with a home port in that WA state, or anyone seeking refugee or asylum status in that state, but excludes anyone not deemed legally competent in that state.
"SME" means small and medium sized enterprises, as defined by the authority.
"WA organ" means any of the sub-committees of the WA.
Availability.
Any inhabitant of a WA state is entitled to at least one "basic account" at a bank, as defined in clause 4 and clause 5.
Each authority is to regulate how basic accounts are provided in that WA state, such as through a specific bank or through multiple institutions.
No denial.
No inhabitant may be denied the opening of a basic bank account due to their individual circumstances, such as having a previous criminal record or being on parole, being homeless, or having a nomadic lifestyle.
An inhabitant having a duly issued identity document pursuant to local laws or extant WA resolutions is deemed to satisfy the know-your-customer requirements for opening a basic account.
The preceding sub-clause does not prohibit a bank from conducting additional due diligence if the customer desires a deeper relationship, such as getting a loan from that bank, or for the bank to decline such a relationship.
A sole proprietorship or an SME duly established under local laws is also entitled to a basic account as defined below.
Basic account. A basic account must include at least all of the following services, both offline and, if internet service is available in that WA state, online:
Savings account in the local currency(ies) of the WA state, including term deposits carrying interest;
Ability to make withdrawals from the said accounts through convenient means (such as ATM cards), if cash is used in that WA state;
Ability to issue and deposit checks issued in that WA state, if checks are used in that state;
Access to payment mechanisms prevalent in that state, such as debit cards or other payment apps;
Domestic inter-bank and intra-bank transfers, as well as remittances to and from foreign bank accounts.
Service standards. A basic account must have the following features:
No minimum deposit balance is required in an account.
No bank may charge maintenance fees for an account.
No service fee may be imposed for services specified in clause 4, except that reasonable fees may be imposed by the bank for foreign remittances as per clause (4)(e).
Technology. Each authority is to make reasonable efforts to promote:
the use of more advanced technology in banking, subject to the levels of technology of that state, such as the use of payment apps, in order to reduce costs for consumers;
financing of microcredit (including micro-loans) to sole proprietors or SMEs through basic accounts;
access to banking to inhabitants in physical areas or in certain vulnerable groups it deems to be under-served by banks, such as through deploying more automated technologies or facilities friendly to inhabitants with physical challenges.
Category: regulation/consumer protection (unlike 94, which is under “free trade”). Rationale: The availability of a bank account protects a consumer’s access to a bank account.
The World Assembly (WA),
Believing that a bank account is key to improving the living standards of WA inhabitants by giving access to modern financial services, avoid pricier alternatives such as remittance standards, and help them access inexpensive credit facilities;
The WA hereby enacts as follows:
Definitions.
"Bank" means an entity that offers savings and lending services (defined below) to inhabitants and SMEs in a WA state. This includes similar entities such as credit unions.
“GF” means the WA General Fund.
"Inhabitant" includes anyone with a legitimate rationale for a basic bank account in that state. This includes, as examples, citizens, residents, employment visa holders, seafarers and other travelling workers, refugees, and diplomats.
“Inhabitant” excludes any not deemed legally competent in that WA state.
“Microcredit” is defined to include loans of relatively small amounts (as determined by that WA state) to inhabitants and SMEs to help them achieve their financial targets or personal targets, such as developing new business opportunities.
"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”). A basic account must include the following features:
Savings and deposits;
Cash withdrawals via debit cards;
Cheque issuance and deposits;
Access to payment mechanisms such as various apps;
Microcredit facilities (as defined in clause 6);
Domestic interbank and intrabank transfers;
Remittances to or from other states.
Features.
Each “account” (and related services) is provided free of charge. This does not affect margins for interest, foreign exchange, or other business.
No minimum deposit balance is required to open or maintain an account.
If a state has Internet access, an 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.
An inhabitant is entitled to at least one basic account.
Each SME is also entitled to at least one basic account.
Each state is to determine how 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 an 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-clause does 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 relationship.
Microcredit.
A bank shall also provide microcredit via “accounts” to inhabitants and SMEs.
Each WA state may determine if microcredit is provided at market rates, or if subsidised (or interest-free) loans are available.
Each WA state may also determine if lending terms and underwriting standards for microcredit differ from market practices in that state.
GF subsidy.
The GF may make a subsidy for microcredit (“subsidy”) available if the GF determines that providing microcredit on a large scale in a WA state is both (i) in the interest of the WA state and its inhabitants, and (ii) is unaffordable to that WA state due to a genuine lack of resources due to war or other circumstances, and not merely due to financial mismanagement).
The GF subsidy shall be in the form of loans to the WA state, fully guaranteed by that WA state. The GF shall determine the terms of such loans, accounting for the circumstances of that WA state. The GF cannot forgive such loans.
Any funds for microcredit shall be distributed in accordance with clause 6.
Other services.
A bank may also provide loans, such as mortgages, credit cards, or overdrafts, or other services to customers via an account.
The WA reserves the right to further regulate lending under clause (6) or sub-clause (7)(a).
Technology
Each state is required to incentivize the use of technology in banking, such as online banking and payment apps, to reduce costs for bank customers.
Each state is required to make reasonable efforts to ensure convenient access to banking for vulnerable inhabitants or those it deems under-deserved, such as through deploying more facilities friendly to those with physical challenges.
Jurisdiction. Each state is responsible for interpretation and enforcement of this resolution.
