Entrepreneurs in Finland face banking challenges amid tightened regulations

Entrepreneurs in Finland are increasingly facing difficulties when trying to open bank accounts for their businesses. A recent report highlighted the case of an entrepreneur from a Tampere-based adult store who was unable to secure a bank account. According to Petri Malinen, an economist with the Finnish Entrepreneurs Association, this issue is not confined to a specific sector but affects entrepreneurs across various fields throughout Finland. A major concern for Malinen is the lack of clear explanations from banks regarding their decisions, which would enable entrepreneurs to provide any missing information if reasons for account denials were properly communicated.

Previously, such challenges were primarily associated with certain industries or businesses owned by foreign nationals. Malinen states that these problems have now broadened to encompass nearly all sectors, largely due to increased regulatory scrutiny. Banks have tightened their controls recently to combat money laundering. Kari Kemppainen, an official from the Ministry of Finance, notes that regulations have become stricter, driven by efforts to prevent money laundering and terrorism financing—a critical objective. However, he acknowledges that banks may have overstepped in their measures and interpretations of these regulations.

This issue materializes particularly when new businesses are established, as many aspiring entrepreneurs find it impossible to operate without functional banking services. Alarmingly, existing businesses have seen their banking services unexpectedly revoked, potentially leading to their collapse and job losses. Finnish Entrepreneurs have appealed to the Ministry of Finance, which is currently assessing the outcomes of two comprehensive surveys addressing the accessibility and usability of banking services. The Ministry aims to explore solutions to make bank procedures more flexible, especially in light of challenges faced by entrepreneurs of Russian descent after the onset of the Ukraine conflict.