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by The South Pacifican Government of Office of WA Legislation. . 174 reads.

GA Recommendation: Vote AGAINST "Access to Basic Banking and Lending"


Access to Basic Banking and Lending


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OWL recommends voting $AGAINST$ the at-vote resolution, "Access to Basic Banking and Lending". The Delegate has been asked to cast their vote accordingly.

Please find below the Office's Analysis for an examination of the resolution and the reasons for the final recommendation.

The Office's Analysis

This resolution would aim to provide basic banking services, such as a "basic" banking account (detailed in section 2 and 3) and microcredit services (section 6), to all residents and all SMEs in WA states.
The primary room for concern lies with section 5 of the resolution, which details that "[...]circumstances, such as having a previous criminal record[...]", are not a permissible reason for denying a basic account. Furthermore, section 5 also mentions that KYC requirements for these basic banking accounts in a WA state are met so long as the inhabitant has a "duly issued identity document" from that WA state. In OWL's mind, section 5 is concerning, insofar as it potentially enables individuals that a WA state might be aware of/monitoring to utilize these banking services (such as remittances or interbank transfers) for nefarious purposes, in effect tying the hands of WA states and banks in WA states when there are legitimate security reasons for certain banking services to be denied.
Section 9 attempts to cover this by making it the responsibility WA states to interpret and enforce the resolution, so WA states could in principle find ways to make it harder for "undesirable" inhabitants from utilizing certain banking services. However, one could easily imagine that this could lead to different standards between WA states for what constitutes a "basic banking service" as well.

While OWL acknowledges that many banking services are indeed essential services for inhabitants of a modern economy, with the above concern, it recommends a vote AGAINST the at-vote resolution.

Analysis courtesy of OWL Director Differences-In-Differences