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IPFS News Link • Central Banks/Banking

Minister Summons Bank Bosses Over Nigel Farage Account Closure

•, by Alexander Zhang

The former UK Independence Party leader claimed earlier this month that the prestigious bank he had been with for over 40 years has closed his account with "no explanation."

Last week, Mr. Farage released dossiers he had acquired from the bank, which indicated that Coutts shut his bank account because it found his public statements did "not align" with its values.

City Minister Andrew Griffith is expected to write to the chief executives of 19 banks, building societies, and digital challengers on Monday, warning that regulations around "politically exposed persons" (PEP) are "being applied in a disproportionate manner by some financial institutions."

He said the government will "take all action necessary" to protect customers from such practices.

'Fundamental Right'

Mr. Griffith says in the letter: "You will be aware of recent publicity around allegations of client de-banking in recent weeks and months.

"This has raised significant concern in both Houses of Parliament, including throughout the passage of the Financial Services and Markets Act 2023, and in recent days."

The minister said the government is "unequivocal" that banks and other payment service providers "should not be terminating contracts of payment account facilities on grounds relating to users' exercising of their right to lawful freedom of expression."

He said the government "strongly supports this fundamental right afforded to all people in British society and will take the action necessary to protect it."