CYPRIOT banks yesterday came under fire from NGOs for their alleged discriminative policies towards immigrants.
In an EU funded report, published yesterday, five NGOs examined banking services to migrants in Cyprus, Spain, Portugal, Italy and Greece.
According Corina Demetriou, co-author and Director of the NGO Simfiliosi, Cypriot banking policies towards migrants are failing to cash in on a viable market and leaving many foreigners with no choice but to act illegally.
The report, titled “Investing in People” says “Cypriot banks do not offer specialised services to economic migrants. Instead they offer them some of the services offered to locals under certain conditions, which do not apply to locals.”
Demetriou said yesterday “The Cypriot Banks’ position is that they have equal policies. However, the problem is that if you treat unequal people with an equal policy, it is discrimination.”
One such policy identified in the report is to monitor and compare account transactions with an account holders salary, in order to catch out money launderers.
“This is an absurd practice, given that transactions of €2,000 Euros may well be in excess of a migrant’s lawful income, which can be €300 Euros per month. It can hardly be a suspect amount for money laundering purposes” the report says. This policy requires that migrants provide an employment contract and proof of legal residence, thus being inaccessible to illegal migrants and asylum seekers.
The problems in the banking industry appear to run deeper than simply over protective anti laundering policies. The report indicates that there is a discriminatory culture within the banking sector, with elements of racial profiling by banks, which associate immigrants with criminal activity, such as drug trafficking, and an inability to provide collateral.
The report says “migrants in general are perceived by bankers as not being credit-worthy because they are ab initio considered as unable to provide the collateral. This approach is effectively shutting the door in the face of those migrants who meet the criteria set by the credit institution.”
Even if you are a legal resident, banking can remain inaccessible because of restrictive working hours, poor understanding of banking practices and language barriers. “In Italy there are information booths in some banks that provide information in various languages. This does not exist in Cyprus.” said Demetriou.
When it came to illegal migrants and asylum seekers, no provision exists at all. As a result a black market for financial services has emerged. “For example,” says Demetriou” It is a well known practice in immigrant circles that legal migrants are making transfers on behalf of illegal migrants. Their only alternative is to pay the hefty transfer fees of firms such as Western Union and Moneygram.
Asked how they could offer services to illegal migrants without being complicit, Demetriou said “This is already happening on a large scale as many formerly legal residents whose work permits have expired remain here and continue banking.”
According to the Interior Ministry, there are 138,000 legal foreign nationals and an estimated 30,000 illegal foreign nationals in Cyprus. Simfiliosi estimates, however, that the total number of immigrants is around 200,000. According to these figures, immigrants make up 20 per cent of Cyprus’ population which is among the highest in Europe.
