Hungary’s largest bank, OTP, is facing an investigation by the country’s ombudsman following allegations that it discriminated against officially recognised refugees by unilaterally closing their existing bank accounts.
Russian psychologist loses access to six-year-old account
The proceedings were initiated after the Hungarian Helsinki Committee, a human rights organisation, filed a complaint claiming that the bank had refused to accept documents confirming refugees’ legal status and had demanded residence permits they were not required to possess.
The Committee has highlighted the case of Aleksandr, a Russian psychologist who was forced to leave his home country and has lived in Hungary since 2019. He was officially recognised as a refugee last year, but subsequently lost access to his six-year-old OTP account.
OTP didn’t accept official documents
During a routine customer identification procedure aimed at preventing money laundering, Aleksandr sought to update his documents. According to the Helsinki Committee, OTP refused to accept his refugee status papers, including an official certificate issued by the immigration authority. The bank reportedly told him he could either close the account voluntarily or have it terminated by the institution, potentially losing access to his money.
He eventually transferred his savings to an account he had previously opened at another bank. The organisation says the case is not isolated. Other refugees, including Russian and Palestinian nationals, have allegedly faced similar treatment, with some having their funds frozen and bank cards blocked.
A separate case involved a Russian refugee student and his mother, whose accounts were terminated after the bank had previously apologised for requesting a residence permit on what it acknowledged was an incorrect legal basis.
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Refugees allegedly asked to provide documents they cannot obtain
The Helsinki Committee argues that the bank’s requirement is impossible to meet. Unlike other foreign nationals, officially recognised refugees and people granted subsidiary protection do not hold residence permits. Their legal status is closer to that of Hungarian citizens, who identify themselves using personal identity cards and address cards.
The organisation says no Hungarian law requires refugees to provide residence permits to access banking services. It alleges that OTP has nevertheless continued to rely on its internal rules and interpretation of legislation.
The bank has maintained its position in its response to the ombudsman, according to the Helsinki Committee. The organisation contends that internal policies or a mistaken interpretation of the law cannot override statutory requirements.
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Investigation could have wider implications
The ombudsman’s investigation follows the Committee’s action as a public interest claimant. The outcome could have implications beyond OTP, with the human rights organisation hoping the proceedings will also provide guidance to other financial institutions.
The allegations have raised concerns about refugees’ access to essential financial services, including receiving wages and paying everyday bills. OTP has not been independently established to have acted unlawfully; the matter is now subject to the ombudsman’s proceedings.
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