The Malaysian Bar has called on Bank Negara Malaysia (BNM) and the banking industry to introduce measures allowing stateless persons to open basic bank accounts, warning that the lack of recognised identification documents is preventing many from participating in Malaysia’s formal economy.
In a statement, Malaysian Bar president Anand Raj said stateless individuals face significant barriers to banking services, leaving them dependent on cash transactions and vulnerable to financial exploitation.
The Bar urged banks to consider alternative identity verification methods, including biometric technology and supporting documents such as school and medical records, to enable stateless persons to access essential financial services.
The Malaysian Bar highlighted that BNM’s basic banking framework requires banks to provide low-cost accounts to eligible consumers, but the eligibility criteria are restricted to Malaysian citizens and permanent residents.
BNM’s Basic Banking Services Policy Document, issued on March 28, 2025, came into effect on April 1, 2026. It is intended to improve access to essential banking services for financially underserved groups.
However, the Bar said stateless individuals without a MyKad often cannot meet standard banking identity verification requirements or use digital account-opening services linked to national identification documents.
It also noted that while banks may accept documents issued by the United Nations High Commissioner for Refugees as identity proof for registered refugees at their discretion, the arrangement does not adequately address the circumstances of stateless persons in Malaysia.
Anand said the inability to open bank accounts has wider economic consequences, including difficulties receiving formal wages, safely storing savings and establishing businesses.
The Malaysian Bar warned that reliance on cash transactions can expose stateless workers to wage theft and other forms of financial exploitation.
It said improving access to banking services could help stateless individuals participate more meaningfully in the economy while supporting financial inclusion and reducing inequality.
The statement followed the Bar Council Constitutional Law and Human Rights Committee’s forum, Statelessness: Malaysians in Waiting, held on Aug 27.
The Malaysian Bar urged financial institutions and regulators to develop practical solutions that would allow stateless persons to satisfy customer identification requirements through alternative documentation and modern verification technology.
It also called on the government to accede to the 1954 Convention Relating to the Status of Stateless Persons and the 1961 Convention on the Reduction of Statelessness without reservations.
Anand said the banking industry, BNM and relevant authorities should work towards providing meaningful banking access without requiring affected individuals to resort to court proceedings.
The Bar maintained that access to basic financial services is essential to enabling stateless persons to work, save and participate in Malaysia’s economy.
