Jenec: The Limits Of Automatic De-Risking In EU Banking Law

On 11 June 2026, the Court of Justice of the European Union (the “Court”) delivered its judgment in Case C-81/24, Jenec. The case concerned the relationship between the right of access to a payment account with basic features under Directive 2014/92/EU (the “Payment Accounts Directive”) and the AML/CFT obligations imposed on financial institutions under Directive (EU) 2015/849 (the “AML Directive”).

The Court held that a bank may not refuse to open a payment account with basic features solely because the applicant appears on a sanctions list issued by a third country, such as the United States Office of Foreign Assets Control (OFAC). While such a designation may constitute a relevant risk factor, refusal must be based on an individual assessment demonstrating that the relevant AML/CFT or sanctions-related risks cannot be adequately managed through proportionate measures.