Give stateless persons banking access, urges Malaysian Bar

 Its president Anand Raj says the absence of a recognised identity document creates a near-total barrier to accessing banking facilities.

The Malaysian Bar said without formal banking accounts, stateless persons were trapped in a cash-only existence.

PETALING JAYA:

The Malaysian Bar has urged the banking industry and regulators to take urgent steps to address the economic and financial exclusion faced by stateless persons by enabling them to access the banking system.

In a statement, Bar president Anand Raj said that for many stateless persons, the absence of a recognised identity document created a near-total barrier to accessing banking facilities.

“It beggars belief that in this day and age, the banking industry and its regulators have yet to deploy biometrics and other modern and sophisticated tools available to them to achieve financial inclusion,” he said.

Anand suggested accepting alternative forms of documentation, such as school and medical records, and adopting innovative technology-based means of verifying customer identity, such as biometrics.

He explained that Bank Negara Malaysia (BNM) required banks to offer low-cost basic accounts to vulnerable groups, but eligibility was explicitly restricted to citizens and permanent residents.

“While BNM allows documents issued by the United Nations High Commissioner for Refugees as proof of identity for registered refugees at a bank’s discretion, this exception excludes stateless persons in Malaysia,” he said.

Anand warned that by being denied formal accounts, stateless individuals were trapped in a cash-only existence, unable to store money safely, receive formal wages or start legal businesses, leaving them exposed to wage theft and financial exploitation.

He emphasised that in a modern economy, the right to earn a living with dignity, in line with Article 5 of the Federal Constitution, was inseparable from having basic financial access.

“No one should be denied meaningful financial inclusion, the right to work and the right to life for pedantic or formalistic reasons.

“We call upon the banking industry, BNM and the relevant authorities to stop turning a blind eye and to provide meaningful and humanitarian solutions to those in need and without the need for court proceedings,” he said. - FMT