Bank bosses to discuss account closures with Treasury – reports
Bosses of the UK’s major banks and financial firms have been called in for a meeting with City minister Andrew Griffith over the closing of bank accounts.
According to a report from the BBC, the Treasury has drafted a letter to banks saying the issue of “client de-banking” had raised “significant concern” in parliament.
Griffith said he would seek a discussion with the finance chiefs “at the earliest opportunity”. The letter will be sent to 19 banks and financial institutions on Monday, the BBC reported.
The letter comes shortly after it emerged Nigel Farage’s bank account was closed by Coutts, a subsidiary of Natwest, because the former Brexit party leader’s views “do not align with our [the bank’s] values”.
Dame Alison Rose, chief executive of Natwest, apologised to Farage for comments made about him in the bank’s papers, in which Farage was described as having “xenophobic, chauvinistic and racist views”.
“I believe very strongly that freedom of expression and access to banking are fundamental to our society and it is absolutely not our policy to exit a customer on the basis of legally held political and personal views,” Rose wrote. She has committed to reviewing Coutts’s internal processes.
Following the uproar, the government announced a series of measures last week to ensure that customers could not be de-banked because of their political views.
Under the proposals, banks will be required to give an explicit explanation of why they are closing accounts and customers will be given rights of appeal against any such decision.
In the letter, Griffith confirmed that the government would “take the action necessary” to protect freedom of expression.
The letter also highlighted that laws on politically exposed persons (PEPs) were being applied in a “disproportionate manner” by some firms.
PEPs are individuals in prominent public positions. Financial institutions have to conduct stricter checks on PEPs, who are deemed more likely to be involved in corruption or bribery.
Many politicians have faced problems with accessing bank accounts, including Jeremy Hunt who revealed earlier this month that he was prevented from opening a bank account at Monzo.
The Treasury was contacted for comment.