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Rabobank has agreed to lift access restrictions for payment institutions following discussions with the Netherlands Authority for Consumers and Markets (ACM). 

The ACM, which oversees compliance with the revised Payment Services Directive (PSD2) in the Netherlands, had received multiple reports from payment institutions that were struggling to open business accounts with Rabobank. 

In response to these complaints, the ACM  a remedial order, in a move that the regulator has confirmed to 91����ԭ�� is its first enforcement action regarding PSD2.

The ACM reminded the bank of its obligations under the directive, which mandates banks to provide access to licensed payment institutions. 

After discussions, Rabobank eliminated several barriers, including placing access requests "on hold" and imposing high financial requirements. The changes enacted are expected to benefit start-ups and smaller institutions, accelerating their access to the market.

In a statement shared with 91����ԭ��, the Dutch retail banking giant said that “in the case of PSPs [payment service providers], meeting these obligations is complex”.

The spokesperson underlined that money laundering policies, found in the anti-money laundering and anti-terrorist financing act, which is known locally as the Wwft, mean that banks have a duty to have insight into the origin and destination of money flows. 

“Transactions that go through PSPs are no exception. Unfortunately, during the period it took us to take the appropriate measures, it was not possible to accept a number of PSPs as clients,” the spokesperson said, pointing out that Rabobank did inform the PSPs in question about this.

In its intervention, the ACM argued that the conditions Rabobank imposed on prospective PSP clients were disproportionate and thus hindered PSPs' entry into the market.

In response to this, the spokesperson for Rabobank said: “In the first months of 2024, we adjusted our policy, making it possible for PSPs to become Rabobank customers again. This takes into account the obligations under the Wwft, the Sanctions Act and PSD2.”

Commenting on the announcement, Martijn Snoep, chairman of the ACM, said: “New payment institutions must be able to enter the market to foster competition and innovation, ultimately benefiting consumers and retailers.”

The ACM also called on other banks to align their policies with PSD2 to ensure fair competition and access across the payment sector.

What does this mean for bank access?

Rabobank’s removal of access restrictions for payment institutions could have significant consequences for both banks and payment institutions operating in the Netherlands. 

For banks, the change underscores the need to comply with the PSD2, and firms will need to provide access to payment institutions without unnecessary barriers, or they risk regulatory scrutiny or actions from authorities such as the ACM. 

Given that the ACM has now published this intervention, and issued a warning to other firms, it is likely that if it receives further complaints about Rabobank, or other institutions, then tougher measures may be taken.

For payment institutions, the policy shift means easier access to essential business accounts, particularly for smaller or new players, and should help reduce financial and administrative hurdles, allowing payment institutions to enter the market more quickly. 

Meanwhile, the EU’s updated Payment Services Regulation (PSR) is expected to tighten up the EU’s rules regarding bank access. 

The legislative text, currently being negotiated, strengthens existing PSD2 requirements, ensuring that banks must provide non-bank PSPs access to payment accounts, and banks can only refuse or close an account for a payment institution in limited situations. 

The PSR also extends these access rights to entities applying for payment institution status, as well as agents and distributors of payment institutions.

If a bank refuses or closes an account, it must notify the entity and provide a detailed explanation, citing specific risks, and the entity will be able to appeal the decision to the national competent authority.

Did Rabobank get off easy?

Considering that the PSD2 has been in place for sometime now, enforcement action has been rather minimal. 

Although the ACM has acted to reduce barriers to entry, it has had this power for seven years and had not acted previously. 

Jurisdictions such as Lithuania have come down hard on payment and e-money institutions over improper safeguarding, but signs that tough action is being taken against banking institutions has been minimal. 

One of the interventions that was taken, back in 2021, was by the European Banking Authority (EBA). 

In February 2021, the EBA  an opinion urging national competent authorities in the trading bloc to ensure banks remove obstacles preventing third-party providers accessing payment accounts, as required by PSD2. 

In the opinion, the EBA emphasised the need for consistent enforcement of PSD2 and the related regulatory technical standards on strong customer authentication and secure communication (RTS on SCA&CSC).

It also called on member state regulators to assess the progress of banks (account servicing payment service providers, or ASPSPs) in removing these barriers, advising that regulators take supervisory actions by April 30, 2021 if obstacles remained. 

If issues persisted, the EBA encouraged stronger measures, such as revoking exemptions or imposing fines, to ensure compliance. 

Although gathering data across the EU is tricky, the remedial measure taken by the ACM regarding business accounts shows that the appetite for tougher enforcement action is, for now, limited.