Claire Kerrane (Roscommon-Galway, Sinn Fein)
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188. To ask the Minister for Finance if his attention has been drawn to the difficulties being experienced by older people with accounts with a bank (details supplied) who have to find alternative banking and have no photographic identification, passport or driver's licence, which many in their 80s and 90s, in particular, do not have; if provision will be made for these citizens; and if he will make a statement on the matter. [36212/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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While it is regrettable that Ulster Bank has decided to exit the market, such decisions are commercial matters and are the sole responsibility of the board and management of the bank, which must be run on an independent and commercial basis. My priority now is that the withdrawal takes place in an orderly manner. The importance of this is emphasised in all engagements with the banks and my officials and I will continue to engage with relevant stakeholders, both public and private, to ensure that impacted customers face the least amount of disruption in migrating their accounts over the coming months.

In relation to the setting up of new accounts, Credit and Financial Institutions are obliged to identify and verify their customer’s identity on the basis of documents or information that they have reasonable grounds to believe can be relied upon to confirm the identify of their customer.  Institutions often use official documents, like passports or driving licences, in order to verify a customer’s identity.  However, neither the relevant legislation (the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended), nor the Central Bank of Ireland are prescriptive as to what documents and information can be relied upon.  This reflects the risk-based approach to anti-money laundering and countering the financing of terrorism (AML/CFT) compliance and supervision. Accordingly, institutions have some flexibility in regards to the forms of identity documentation they may wish to rely upon.

Therefore, the AML/CFT legal framework is sufficiently flexible to allow institutions to accommodate both financial inclusion and effective risk management through reliance on various forms of identification.

Under the provisions of the Consumer Protection Code, the Central Bank expects that all regulated firms take a consumer-focused approach and act in their customers’ best interests:

- Provision 2.11 of the Code provides that a regulated firm must not, through its policies, procedures, or working practice, prevent access to basic financial services. This provision aims to ensure that vulnerable people can gain access to mainstream financial services.

- Provision 3.1 of the Code provides that “where a regulated entity has identified that a personal consumer is a vulnerable consumer, the regulated entity must ensure that the vulnerable consumer is provided with such reasonable arrangements and/or assistance that may be necessary to facilitate him or her in his or her dealings with the regulated entity.”

I would also advise the Deputy that all of the banks have dedicated customer phone numbers for vulnerable customers to support them as required.

Thomas Gould (Cork North Central, Sinn Fein)
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189. To ask the Minister for Finance if he has engaged with banks regarding the reduction of quarterly fees, given the current climate, and encouraged them to notify people of quarterly fee charge withdrawals prior to withdrawal [36225/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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As Minister for Finance, I do not have a direct function in the operations of any bank. Although the State is a shareholder in some of the banks operating in the State, they must be run on a commercial and independent basis.

The charging of fees is a commercial decision for regulated entities, within the parameters of the regulatory framework.

Under Section 149 of the Consumer Credit Act, 1995 (as amended)(the Act), credit institutions must notify the Central Bank if they wish to introduce any new customer charges or increase any existing customer charges, in respect of the provision of any of the following services: 

- making and receiving and receiving payments; 

- providing foreign exchange facilities; 

- providing and granting credit; 

- maintaining and administrating transaction accounts. 

Each notification received by the Central Bank is assessed in accordance with the specific criteria set out in Section 149 of the Act. The Central Bank may either approve (in full or at lower levels than requested) or reject a credit institution’s application under Section 149. In fulfilling its statutory role under Section 149, the Central Bank assesses these notifications in accordance with the following specific assessment criteria as set out in the legislation: 

- the promotion of fair competition; 

- the commercial justification; 

- the effect new charges or increases in existing charges will have on customers; and 

- passing on costs to customers. 

Approvals are issued in the form of a letter of direction and the entity is legally bound to comply with this letter of direction. The letter of direction sets out the maximum amount the credit institution is allowed to charge. Credit institutions are free to impose any pricing differentials for the service up to the permitted maximum and are free to waive fees at their discretion for commercial or competitive reasons. The letter of direction also sets out that credit institutions must publish the charges to be imposed on notices, leaflets, and promotional material etc. which should be made available to customers and on the credit institutions website if appropriate (the withdrawal of the fees will also be notified to the relevant customers prior to withdrawal).

Where a regulated entity intends to introduce new charges or increase any existing charges, under provision 6.18 of the Consumer Protection Code, it must give notice to affected consumers of the introduction of any new charges or of increases in charges, specifying the old and new charge, at least 30 days prior to the charge taking effect. 

If customers are unhappy with their current account provider for any reason, including cost, it may be useful to know that Competition and Consumer Protection Commission operates a comparison tool for current account fees on its website. This can be used by consumers to find the account which best meets their needs.