Project R-15833

A Balancing Act. de-nsking by Financial Institutions in lighr of the freedom (not) ro contract and tne freedom to conduce a business. (Research)

De-risking' is a phenomenon that has been increasingly observed in the banking sector in recent years. There are several reasons why financial institutions engage in de-risking, such as compliance with anti-money laundering and counter-terrorism financing legislation. This legislation, developed by the EU and subsequently implemented by its member states, imposes obligations on private entities, including banks, such as preventing, detecting, investigating, and reporting potential criminal activities. The risks faced by financial institutions for noncompliance are significant. On the flip side, businesses are increasingly encountering banks refusing to provide them with a bank account or unilaterally terminating the customer relationship. For businesses, this ultimately leads to financial exclusion, as they need access to the financial system to operate. Moreover, this entails a restriction of their entrepreneurial freedom. In this context, the research project will examine the tension between, on the one hand, the quasi-public responsibilities of financial institutions as 'gatekeepers,' prompting them to use their freedom to (not) contract in certain ways, and on the other hand, the positive aspects of the entrepreneurial freedom of businesses. The goal is to provide legal solutions that can help strike a balance between these two freedoms.

01 October 2025 - 30 September 2029