Bank account issues for cross-border commuters and businesses in the Nordic countries

Cross-border commuters who live in one Nordic country and work in another may need a bank account in the country where they work. Regional information services have reported an increase in cases where banks refuse to open accounts for cross-border commuters because they do not have a personal identification number or national ID issued by the country where they work.

This problem has been reported particularly frequently in Sweden. Cross-border commuters who live in Sweden and start working in Denmark have also been refused bank accounts in Denmark because they could not provide two valid forms of identification or because their employment had lasted less than six months.

Danish businesses have also experienced difficulties opening business accounts in Sweden. In some cases, Swedish banks have required proof of a Swedish personal identity number.

In another case, a Danish business with customers in Sweden successfully opened an account with a Swedish bank. The bank subsequently required the business to provide a Swedish coordination number, samordningsnummer, or corporate identity number, organisationsnummer, to keep the account open. However, the Swedish public authorities had not issued either number because the company's limited activities in Sweden did not make it liable to pay tax there.

Cross-border commuters and businesses operating in border regions consider this a significant obstacle. They have had to spend considerable time dealing with an issue relating to what is considered a basic right within the EU/EEA. In some cases, this has resulted in businesses choosing not to continue operating on the other side of the border.

The Danish Ministry of Industry, Business and Financial Affairs, Erhvervsministeriet, states: “the right to a basic payment account only applies to consumers and not to businesses operated by cross-border commuters. There is no right to a business account, but the Danish banking industry association, Finans Danmark, has issued a recommendation to its members on access to business accounts subject to a number of specified conditions”. 

If a cross-border commuter does not have Swedish proof of identity, the bank can still verify their identity using an identity document issued by a public authority that states the individual's citizenship.

If a bank refuses to open a bank account for a cross-border commuter, the individual can contact the bank's complaints department and ask for the decision to be reconsidered. Banks do not always make this option clear, which means that not all customers are aware that they can challenge the bank's decision. This is considered a problem.