FCA urged to speed up review into bank account closures

Treasury urges watchdog to speed up review into claims Britons are being denied bank accounts over their political views – after Nigel Farage reveals he has been shut out by Coutts and NINE other banks

• Andrew Griffith writes to Financial Conduct Authority to demand swift action 

Treasury minister Andrew Griffith has urged the banking watchdog to ‘prioritise’ a review into claims Britons are having accounts closed due to their political views.

In a letter to the boss of the Financial Conduct Authority, the Economic Secretary to the Treasury demanded swift action in a row about ‘Politically Exposed Persons’.

Ex-Brexit Party leader Nigel Farage is currently waging a furious fightback against what he claims is ‘serious political persecution’ by British banks.

He has claimed Coutts have closed his account and nine other banks have refused him as a customer after he was deemed a PEP.

The 59-year-old, previously the leader of UKIP, has suggested the action is due to his involvement in the Brexit referendum and a ‘prejudice’ held against him.

MailOnline has also revealed how one of Britain’s equalities leaders, a father’s rights charity, and a former UKIP councillor have all had their accounts shut.

Treasury minister Andrew Griffith has urged the banking watchdog to ‘prioritise’ a review into claims Britons are having accounts closed due to their political views

In a letter to the boss of the Financial Conduct Authority, the Economic Secretary to the Treasury demanded swift action in a row about ‘Politically Exposed Persons’

Ex-Brexit Party leader Nigel Farage is currently waging a furious fightback against what he claims is ‘serious political persecution’ by British banks

In his letter to FCA chief executive Nikhil Rathi, Mr Griffith said the ‘strength of concern’ on the issue means it needs to be prioritised by the watchdog.

He highlighted how the FCA had a legislative obligation to review its guidance on PEPs and banks’ adherence to this guidance.

‘While I recognise the importance of ensuring that appropriate measures are in place to prevent money laundering, it is crucial that an appropriate balance is struck and that these measures do not unduly burden or prevent democratically elected individuals, public officials, or their respective families from access to essential banking services,’ the Treasury minister wrote.

‘The Government is clear that domestic PEPs should be treated in a manner which is in line with their risk, and that banks should not be closing individuals’ accounts solely due to their status as a PEP.

‘Given the strength of concern on this issue, I would expect that the FCA will prioritise this important review over the coming months, and if there are “easy wins” along the way will implement these expeditiously.’

In his letter to FCA chief executive Nikhil Rathi, Mr Griffith said the ‘strength of concern’ on the issue means it needs to be prioritised by the watchdog

PEPs are described as individuals around the world with ‘prominent public functions’.

UK law recognises the risk of PEPs abusing their positions for private gain and using the financial system to launder the proceeds of any abuse.

They are required to go through enhanced scrutiny when using the services of financial firms, such as banks.

Speaking in the House of Commons this week, security minister Tom Tugendhat said it should be ‘completely unacceptable’ for a bank to close an account on ‘political grounds’.

‘PEP is there to prevent the corrupt use of banking facilities by politicians in corrupt regimes,’ he told MPs.

‘It is not here to silence individuals who may hold views with which we may or may not agree.’

Senior Conservative backbencher David Davis has warned that Mr Farage is ‘only the latest of a number of people to have their lives wrecked by this regulation’.

A spokesman for the FCA said they would be responding to Mr Griffith’s letter ‘in due course’.

Source: Read Full Article