Panel on the importance and possibilities of financial inclusion of refugees ©UNHCR/K.Nsengiyumva
UNHCR, the Commissariat for Refugees and Migration of the Republic of Serbia, and the Commissioner for the Protection of Equality have jointly addressed financial institutions to enable and improve refugees’ access to payment accounts in Serbia.
Belgrade, November 15 – Refugees and asylum seekers in Serbia should be provided with seamless access to at least basic bank products and services such as payment accounts, as it is indispensable for their economic survival and successful integration. Forcibly displaced persons have a fundamental need for payment accounts, to be able to receive and use salaries or financial assistance, which are their basic rights directly related to the material conditions of reception, as defined in the Law on Asylum and Temporary Protection, it was concluded at the “Financial Inclusion of Refugees – Importance, Challenges and Potential” roundtable.
The roundtable was organized by the UN Refugee Agency (UNHCR), as part of the effort to promote and enhance the access of refugees to financial services. At the roundtable, UNHCR and partners, including the Serbian Commissariat for Refugees and Migrations and Commissioner for Protection of Equality, have addressed banks in Serbia to provide and enhance access to, at minimum, payment accounts to refugees and asylum seekers.
“Addressing barriers to financial inclusion and implementing good practices will enable all relevant stakeholders to work together to ensure that refugees in Serbia have the opportunity to achieve their full economic potential. This not only improves the lives of persons who were forced to flee, but also benefits the host community and economy by creating a more diverse, inclusive, and prosperous society”, said Soufiane Adjali, UNHCR Representative in Serbia.
Adjali underlined that promoting financial inclusion for refugees indeed requires a collaborative effort from multiple stakeholders, and that UNHCR is at the disposal of financial institutions with its expertise, experience, and data, to jointly contribute to improving refugees’ access to financial products and overcoming any barriers in that regard.
“Opening an account is one of the key steps in the integration process. In today’s world, it has become a prerequisite for exercising the right to work and earn. This allows refugees to become economically active members of the community, contributing to the local economy and reducing their dependence on humanitarian aid. It is the Commissariat’s task to care for the integration of people who have received protection in our country, and today we discussed the obstacles refugees face and ways to overcome them,” said Svetlana Velimirović, Deputy Commissioner for Refugees and Migration of the Republic of Serbia.
It was also highlighted that a growing number of refugee entrepreneurs and aspiring small business owners would welcome the support of financial institutions through access to non-financial support such as mentorship and trainings, as well as to loan products, which are not available at the moment to forcibly displaced persons.
According to the experience of UNHCR, the Serbian Commissariat for Refugees and Migration, and refugees themselves, most challenges in accessing payment accounts and other financial products are related to the non-recognition of refugees’ and asylum seekers’ identification documents, as well as risk management practices by banks.
Liudmyla, Ilona and Kochai, refugees who are entrepreneurs ©UNHCR/K.Nsengiyumva
Roundtable "Financial inclusion of refugees in Serbia - importance, challenges and potential" ©UNHCR/K.Nsengiyumva
These challenges are confirmed by the addresses made to the Commissioner for the Protection of Equality, who, when reviewing specific cases, pointed out that, based on adopted regulations and without questioning the application of provisions of laws governing the prevention of money laundering and the financing of terrorism, a consumer with legal residence in the Republic of Serbia who does not have a payment account should be allowed by the bank to open and use a payment account with basic services, with non-discriminatory terms for opening, maintaining, and closing such accounts.
In addition to domestic examples, the roundtable also presented examples of best practices for the financial inclusion of refugees from European and other countries, including guidelines from the European Banking Authority and the Financial Action Task Force (FATF), which aim to improve financial inclusion for underserved groups, such as refugees.
In their guidelines, both institutions noted that enabling access to at least basic financial products plays an important role in combating money laundering and financing terrorism, as the lack of access can lead to transactions in the “gray zone,” which limits transparency and increases the risk of criminal activity and money laundering.
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This activity was organized within the project “EU Support to Migration Management: Fostering the Integration of Refugees and Migrants” implemented by UNHCR Serbia in partnership with IOM Serbia and SCRM with the support of the European Union. The organizer is solely responsible for content that does not necessarily reflect the official views of the European Union.
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