At present, an individual whose access to bank accounts is restricted due to such concerns cannot pay state fees or legal fees, as cash payments are mostly barred save for the smallest sums.

As a result, the individual's rights can potentially be infringed.

Chancellor of Justice Ülle Madise, Reform MP and member of th Riigikogu's Constitutional Affairs Committee Kalle Laanet, and Riigikogu Finance Committee chair Annely Akkermann (Reform), made presentations on bringing the Anti-Money Laundering and Terrorist Financing Act, the Credit Institutions Act, the Law of Obligations Act, and the State Fees Act into compliance with the Constitution.

Madise noted that there are numerous complaints in various forms.

"Going to court and living one's life out as a reasonable member of society is a fundamental right," the justice chancellor stressed.

She added that due to the interplay of the legislation in question, a situation has arisen where these options, including the possibility to go to court, evaporate unless proxies or shell accounts, which are also prohibited, are used. "The banks can be understood as well, because suspicions of money laundering and the need to prevent terrorism are indeed serious national objectives. Plus banks are subject to very strict financial supervision, especially in Estonia," Madise said.

The Chancellor of Justice suggested two types of solutions. "One is to promote and expand the circulation of cash. Another option, which our office would very seriously ask to consider, is to create a regulation that allows every person – even those convicted of money laundering and who are free, even though most of these troubled individuals have not been convicted of anything – to still have a single bank account with clearly monitored transactions," she said.

Madise said believes that a system like that would be entirely feasible to establish, while it would not result in the cessation of payments in U.S. dollars, conflict with EU law, or anything else. "However, legislative norms are still needed if the Riigikogu decides to go this route," said Madise.

Laanet provided an overview of the discussion which had been held at the constitutional committee, where it was concluded that the justice chancellor's proposal was justified and the Riigikogu should indeed bring the laws into compliance with the Constitution.

According to Akkermann, the finance committee also decided to support the Chancellor of Justice's proposal to resolve the problem and to introduce a legislative amendment that would require banks to open a bank account for a person under certain conditions, even with restrictions.

Setting restrictions on the use of the account would help reduce the risks associated with money laundering or financing terrorism.

She also pointed out that the anti-money laundering requirements are quite stringent. There is actually a contradiction between various directives that they are trying to resolve, Akkermann, a former finance minister, went on.

According to explanations given by a representative of the Ministry of Finance in the committee, drafts of the Law of Obligations Act and the Credit Institutions Act are being prepared and the plan is to send them for coordination in May.

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