Title: UK Treasury Summons Bank Chiefs Over Account Closure Controversy
Date: 23 July 2023
The UK Treasury has scheduled a meeting with top bank executives to discuss account closures, prompted by a recent dispute involving former politician Nigel Farage and NatWest. Minister Andrew Griffith has expressed “significant concern” over allegations that bank accounts are being closed due to individuals’ political views.
Mr. Farage, who had his account at Coutts, a subsidiary of NatWest, closed, claims that it was a result of his political opinions. The incident has brought public attention to the wider issue of account closures based on individuals’ publicly-stated views, leading the government to investigate the matter further.
In a letter seen by the BBC, City Minister Andrew Griffith raised concerns regarding recent allegations of “client de-banking” and acknowledged the significant attention the issue has garnered in Parliament. The letter will reportedly be sent to 19 banks and financial services firms, with the government taking action to protect freedom of expression within the bounds of the law.
The Treasury’s response comes following their announcement of plans to impose stronger regulations on UK banks regarding customer account closures. Under these proposed rules, banks will be required to provide a 90-day notice period before closing an account, giving individuals additional time to appeal against the decision and offering more transparency regarding the reasons for closure.
These stricter regulations are expected to be implemented after the summer period. Banks will be mandated to inform customers of the reasons behind their account closure, making it easier for customers to challenge the decision.
In Mr. Farage’s case, Coutts closed his account without providing a reason initially. However, he later obtained a document assessing his suitability as a customer, stating that his public views were incongruent with Coutts’ status as an “inclusive organization.” The document further raised concerns about Mr. Farage’s alleged xenophobia and racism, as well as the reputational risks associated with him as a client.
Following the controversy, Dame Alison Rose, the CEO of NatWest Group, apologized to Mr. Farage for the “deeply inappropriate” comments made in the document. She also revealed plans to conduct a comprehensive review of Coutts’ processes related to account closures.
The upcoming meeting between the Treasury and bank bosses aims to address the issue at hand and find a resolution that upholds both freedom of expression and fair banking practices, while ensuring accountability for account closures based on controversial grounds.
As the investigation progresses, the government remains committed to safeguarding the rights of individuals to express their views without undue repercussions on their financial services, while maintaining a balance with the legal and ethical responsibilities of banks.
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