A CIS registration with banks can have far-reaching consequences for your financial life. The
Central Information System, managed by the CIS Foundation, is a register used by banks and insurers to share information about customers who have been involved in incidents or irregularities. If you are registered in this system, this can lead to banks refusing you as a customer or terminating your existing banking relationship. In this article, you will read what a
CIS registration with banks exactly entails, what consequences it has, and what rights you have to challenge the registration.
What is the Central Information System? The Central Information System is a database managed by the CIS Foundation. Almost all Dutch insurers and a large number of banks are affiliated with this foundation. The system was originally set up for the insurance industry to share information about insurance claims and incidents, but its use has expanded over the years to the broader financial sector. The CIS contains various registers, including the Incident Register and the External Referral Register.
The registrations in the CIS are not public. Only affiliated financial institutions can consult the system. If you want to open a new bank account, take out insurance, or apply for another financial product, the relevant institution can look up your details in the CIS. A registration can be a reason for the institution to reject your application or to impose additional conditions.
How does a CIS registration with banks arise? A CIS registration with banks can come about in various ways. The registration is always carried out by a financial institution affiliated with the CIS, not by the CIS itself.
Registration due to suspected fraud
The most common reason for a CIS registration with banks is suspected fraud or irregularities. If the bank suspects that you have been involved in fraud, money laundering, or other financial crime, it can enter a registration in the Incident Register and possibly also in the External Referral Register. The severity of the suspected incident determines in which register the registration is placed.
Registration via the insurance industry
A common route to a CIS registration with banks runs via the insurance industry. If an insurer registers you in the CIS due to a fraud investigation or the cancellation of your policy, this registration is also visible to banks that consult the CIS. A conflict with your insurer can therefore inadvertently also affect your banking relationship.
Registration due to unusual transactions
Under the Anti-Money Laundering and Anti-Terrorist Financing Act, banks are obliged to investigate and report unusual transactions. If an investigation into unusual transactions on your account leads to the suspicion of irregularities, the bank can carry out a CIS registration.
Consequences of a CIS registration with banks
The consequences of a CIS registration with banks can profoundly affect your daily life. Without access to banking services, you can hardly function in today’s society.
Refusal as a customer
Based on a CIS registration, banks can decide not to accept you as a customer. This can mean that you cannot open a new bank account, cannot take out a savings account, and cannot purchase payment services. In a society that is almost completely digitized, the lack of a bank account is a serious problem.
Termination of existing banking relationship
A CIS registration can also have consequences for your existing banking relationship. The bank can decide to close your account, withdraw your credit facility, or terminate other services. Although banks may not lightly proceed to terminate the banking relationship, a CIS registration provides them with grounds to consider this.
Domino effect to other financial services
Because the CIS is shared with both banks and insurers, a registration can cause a domino effect. A registration originally carried out by a bank can also affect your options with insurers, and vice versa. This means that you can encounter problems not only when opening a bank account, but also when taking out insurance, obtaining a mortgage, or applying for a loan.
Your rights with a CIS registration As a data subject, you have rights that protect you against unjustified or disproportionate registrations in the CIS.
Right to information and access
The financial institution that carried out the registration is obliged to inform you about this. In addition, under the GDPR, you have the right to access the data registered about you. You can submit an access request to the CIS Foundation to see which registrations are in your name. The CIS Foundation must respond to your request within one month.
Right to rectification and erasure
If the registered data is incorrect or if the registration is unlawful, you have the right to rectification or erasure. You can request the financial institution to correct or remove the registration. If the institution refuses this, you can file a complaint with the Kifid, the Dutch Data Protection Authority, or the court.
Right to a proportionate registration
The registration must be proportionate in relation to the severity of the incident. A registration for the maximum duration of eight years for a relatively minor incident can be considered disproportionate. In the event of a dispute, the court assesses whether the duration and nature of the registration are proportionate to the observed incident.
Challenging a CIS registration with banks Challenging a CIS registration with banks requires a well-thought-out strategy. You can object to the financial institution that carried out the registration, file a complaint with the Kifid, or start proceedings in court. In any case, it is important to substantiate your objection well with evidence and legal arguments.
In its assessment, the court weighs the interest of the financial institution in the registration against your interest in removal. Factors that play a role here include the severity of the alleged incident, the substantiation of the registration, the consequences for you as a data subject, the duration of the registration, and whether you have shown good behavior since then.
The right to a basic bank account If you cannot open an account anywhere due to a CIS registration with banks, you can invoke the right to a basic bank account. Under European regulations, every consumer who legally resides in the EU has the right to a basic bank account. A bank may only refuse this in exceptional cases. If you are rejected everywhere, a lawyer can help you to enforce this right.
Subsidized legal aid
Challenging a CIS registration with banks can be legally complex. If your income is limited, you may be able to apply for an addition via the Legal Aid Board. The government then pays the largest part of the lawyer’s fees and you only pay a limited personal contribution. This way, legal help is also accessible if your financial resources are limited.
The duration of a CIS registration with banks A registration in the Incident Register or the EVR can last for a maximum of eight years. However, the actual duration must be proportionate in relation to the severity of the incident. This means that not every registration must automatically last eight years. For less serious incidents, a shorter registration duration may be more appropriate. In case law, there are numerous examples of cases in which judges have shortened the registration duration, for example from eight years to three or four years.
It is important to actively monitor the registration duration and take timely action if you believe that the registration is no longer justified. Over time, circumstances may have changed to such an extent that a continuation of the registration is no longer proportionate. A lawyer can advise you whether there are grounds at any time to request a shortening of the registration duration.
The emotional and social impact In addition to the financial consequences, a CIS registration with banks also has a significant emotional and social impact. The feeling that you are excluded from the financial system, the shame that can accompany it, and the uncertainty about your financial future weigh heavily. Many data subjects experience feelings of powerlessness and frustration, especially if they believe that the registration is unjustified.
It is important to know that you are not powerless. The law offers you protection and there are effective legal means to challenge an unjustified registration. By engaging professional help in a timely manner, you can not only restore your financial position but also regain the feeling of control over your own situation.
The relationship between CIS registration and Wwft investigation Under the Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft), banks are obliged to carry out customer due diligence and report unusual transactions. A
CIS registration with banks can be the result of a Wwft investigation that has yielded indications of irregularities. However, it is important to know that a
Wwft investigation does not automatically mean that you are guilty of money laundering or other criminal offenses. An investigation can also be started based on objective characteristics of transactions that afterwards turn out to have an innocent explanation.
If your CIS registration is the result of a Wwft investigation, it is crucial to critically assess the findings of the investigation. Are the conclusions justified based on the facts?
Are there alternative explanations for the flagged transactions? A lawyer with experience in
Wwft cases can help you to refute the findings and challenge the registration.
CIS registration and the right to a basic bank account
Under the European Payment Accounts Directive, every consumer who legally resides in the
EU has the right to a basic bank account. This right has been implemented in the Netherlands in the Financial Supervision Act. A bank may only refuse a basic bank account in exceptional cases. If you cannot go anywhere for a bank account due to a CIS registration, the right to a basic bank account forms an important safety net. A lawyer can help you to enforce this right if banks wrongly refuse you.
Take action against an unjustified CIS registration
A CIS registration with banks can severely limit your financial life, but you do not have to accept this. With the right legal assistance, you can have the registration assessed and removed where necessary. The sooner you take action, the faster you can restore your financial freedom. Do you have a CIS registration with a bank and are you experiencing the consequences of this? Contact us for a non-binding assessment. Our lawyers have experience with CIS registrations and are happy to help you protect your rights.
Read also
- CIS registration with insurers
- EVR registration: difference from CIS
- CIS registration: what is it and how do you remove it?
- Insurance law lawyer
