Under Maltese law, we stand by the belief that everyone is innocent until proven guilty. However, it feels like our banks have turned this principle on its head.
As I have been meeting more citizens and business owners while campaigning for the European Parliament election, it has become obvious that people are fed up with banks treating them as potential criminals.
This frustration is not coming out of thin air. It is largely because regulatory bodies are cracking down hard with anti-money laundering regulations.
On paper, that is a great initiative. The problem is that the average Joe, who probably does not even fully grasp what money laundering entails, ends up bearing the brunt.
Our country’s brief stint on the FATF’s grey list played havoc with our financial system’s reputation. Sadly, some were even rooting for us to land on that list.
Even though we have since been cleared, law-abiding citizens, NGOs and businesses are still facing unnecessary hurdles in accessing financial services.
Meanwhile, as banks report record profits year after year, their service quality is on a steady decline.
While there might be valid reasons for this bureaucratic marathon, I would expect them to invest in modern digital technology that simplifies things for their customers.
For our older citizens or those who are less tech-savvy, the lack of clear communication between banks and their customers often leads to avoidable disputes. In these cases, straightforward and effective communication could go a long way.
However, I believe we need more than just better communication. We need a radical overhaul of the service banks provide.
Let’s remember, banks serve us, the ‘clients’, not the other way round. Everybody is trying to make a living. It does not make sense to block someone from investing their hard-earned cash or to make them feel inadequate.
People are fed up with banks treating them as potential criminals- Marija Sara Vella Gafà
Increasingly, businesses find themselves in limbo for months when trying to open a bank account, with many facing outright rejection. It almost feels like local banks are nudging them towards alternative financial solutions, which is not doing our economy any favours.
This approach stifles start-ups, despite our welcome mat for those considering setting up shop in Malta and Gozo.
Even though new fees are constantly being introduced, business owners feel customer service is only getting worse. Following the pandemic and the conflict in Ukraine, the lack of support from local banks is just adding insult to injury.
Imagine if banks were like a restaurant that makes you wait an hour outside, even when there are free tables. Once inside, you are left hanging because they are understaffed. There is no guarantee you will get what you ordered, you are charged an arm and a leg, and the service and product do not justify the price.
Worse still, they act like they are doing you a favour. That is a place you would never revisit. Charging exorbitant fees for routine services or penalising people for large deposits, donations, or simply wanting to transfer money to their children is just not on. Nor is dragging out simple tasks like updating a sanction letter during a separation case, to the point where it disrupts lives.
As your hopeful voice in Europe, I am clear on this: yes, to scrutiny against illegal activities, but a big no to treating everyone like a criminal.
I am committed to keeping this conversation going, wherever and whenever necessary.
Marija Sara Vella Gafà is the mayor of Gudja and a Labour Party candidate for the European Parliament elections.