Case C-78/21, PrivatBank and Others: Judgment of the Court (First Chamber) of 2 March 2023 (request for a preliminary ruling from the Administratīvā apgabaltiesa — Latvia) — AS ‘PrivatBank’, A, B, Unimain Holdings Limited v Finanšu un kapitāla tirgus komisija (Reference for a preliminary ruling — Articles 56 and 63 TFEU — Freedom to provide services — Free movement of capital — National measure imposing an obligation on a credit institution to terminate business relationships with non-nationals or no longer to enter into such relationships — Restriction — Article 65(1)(b) TFEU — Justification — Directive (EU) 2015/849 — Prevention of the use of the financial system for the purpose of money laundering and terrorist financing — Proportionality)
Date: 2023-03-02
Institutions: Court of Justice
Subjects: credit institution, financial services, freedom to provide services, money laundering, national, principle of proportionality, terrorism financing, trade relations








C_2023155EN.01000602.xml










2.5.2023   


EN


Official Journal of the European Union


C 155/6






Judgment of the Court (First Chamber) of 2 March 2023 (request for a preliminary ruling from the Administratīvā apgabaltiesa — Latvia) — AS ‘PrivatBank’, A, B, Unimain Holdings Limited v Finanšu un kapitāla tirgus komisija
(Case C-78/21, (1) PrivatBank and Others)
(Reference for a preliminary ruling - Articles 56 and 63 TFEU - Freedom to provide services - Free movement of capital - National measure imposing an obligation on a credit institution to terminate business relationships with non-nationals or no longer to enter into such relationships - Restriction - Article 65(1)(b) TFEU - Justification - Directive (EU) 2015/849 - Prevention of the use of the financial system for the purpose of money laundering and terrorist financing - Proportionality)
(2023/C 155/08)
Language of the case: Latvian

Referring court

Administratīvā apgabaltiesa

Parties to the main proceedings


Applicants: AS ‘PrivatBank’, A, B, Unimain Holdings Limited

Defendant: Finanšu un kapitāla tirgus komisija

Operative part of the judgment







1.


Financial loans and credits and operations in current and deposit accounts with financial institutions and, in particular, credit institutions constitute movements of capital within the meaning of Article 63(1) TFEU.










2.


The first paragraph of Article 56 and Article 63(1) TFEU must be interpreted as meaning that an administrative measure by which the competent authority of a Member State, first, prohibits a credit institution from entering into business relationships with any natural or legal person who has no connection with the Member State in which that institution is established and whose monthly account turnover exceeds a certain level, and, secondly, requires that institution to terminate any such business relationships entered into after the adoption of that measure, amounts to a restriction on the freedom to provide services, within the meaning of the first of those provisions, and a restriction on the movement of capital, within the meaning of the second of those provisions.










3.


The first paragraph of Article 56 and Article 63(1) TFEU must be interpreted as meaning that they do not preclude an administrative measure by which the competent authority of a Member State, first, prohibits a credit institution from entering into business relationships with any natural person who has no links with the Member State in which that institution is established and whose monthly account turnover exceeds EUR 15 000, or with any legal person whose economic activity has no connection with that Member State and whose monthly account turnover exceeds EUR 50 000, and, secondly, requires that institution to terminate any such business relationships entered into after the adoption of that measure, provided that that administrative measure, first, is justified by the objective of preventing money laundering and terrorist financing or as a requisite measure to prevent infringements of national law and regulations in the field of the prudential supervision of financial institutions, or as a measure which is justified on grounds of public policy, referred to in Article 65(1)(b) TFEU; secondly, is appropriate for ensuring attainment of those objectives; thirdly, does not go beyond what is necessary for attaining them; and, fourthly, does not lead to an excessive impairment of the rights and interests protected under Articles 56 and 63 TFEU, which are enjoyed by the credit institution concerned and its customers.






(1)  OJ C 138, 19.4.2021