The case concerned an appeal submitted by Unicredit Bank against a decision of the Administrative Court Sofia City in which the latter annulled the tacit refusal of the bank to open a bank account for the applicant, an Afghan national, beneficiary of subsidiary protection. The bank claimed that the lower court pronounced an unclear decision, without sufficient assessment of all relevant facts and documents, and that it did not allow for an oral hearing. The Supreme Administrative Court noted the facts as follows: the applicant, S.M, Afghan national was granted humanitarian status (subsidiary protection) in Bulgaria and requested the opening of a basic account for the payment under the Law on Payment Services and Payment Systems. The applicant submitted to the bank all requested documents, but the bank did not respond to the request within the 10 days statutory period which equated, according to the applicant’s defence, to a tacit refusal from the bank. The 10 days statutory deadline is provided under Article 19 of the Law on Payment Services and Payment Systems. The administrative court of Sofia city considered that the bank had a legal obligation, as provided in Article 119 par. 6 of the Law on Payment Services and Payment System to provide a written reasoned decision for the refusal to open a bank account. The court also stated that the bank is obliged to collect all relevant documents and to consider all statutory ground before accepting to open an account or in case of refusal, to issue a reasoned written decision. The administrative court also noted that the Civil Code expressly provides for reasons of refusal to open a payment account for basic operations and thus a refusal can be granted only based on one of these reasons.

The Supreme Administrative Court confirmed the findings of the lower court, annulled the contested act and the case was sent back to the issuing body to re-examine the application.