Nigel Farage’s financial institution accounts: What’s all of it about, and what is the Coutts threshold?

Nigel Farage says his account with high-net-worth financial institution Coutts has been closed.

The Brexit campaigner was advised by the distinguished non-public financial institution – a favorite of the Royal Family – that it no longer wants him as a customer.

Mr Farage claimed in a video on Twitter this was on account of him being a “politically exposed person” or PEP, and stated closing his financial institution accounts was a part of a plan to drive him out of the UK.

The financial institution would not need his customized as a result of he does not have enough money in his accounts, based on a BBC report.

Here’s what that you must find out about Mr Farage’s battle for a checking account, what a PEP is and what it means for banking.

What has Nigel Farage stated about his financial institution accounts?

Mr Farage final week stated a financial institution – now confirmed as Coutts – had decided to stop doing business with him.

He stated a letter from the financial institution contained no rationalization and he had then been advised over the telephone it was a “commercial decision”.

In the six-minute video posted on Twitter, he stated dropping his checking account was the equal of being a “non person” and that the choice might “fundamentally affect [his] future career and whether [he] can even go on staying living here in this country”.

“The establishment are trying to force me out of the UK by closing my bank accounts,” the caption learn.

In a second Twitter video, he stated he had been rejected from having financial institution accounts by 9 totally different firms.

He stated NatWest, the proprietor of Coutts, supplied him an account after his announcement final week, but it surely was not appropriate as a result of it was a private and never a enterprise account.

Farage claimed banks didn’t need him as a buyer on account of him being a “politically exposed person”, or PEP.

What does being a PEP need to do with banking?

A PEP is somebody who’s in public workplace and is due to this fact extra inclined to corruption or bribery.

PEPs embody MPs, ministers, members of the supreme court docket, and their relations.

Banks have to hold out further checks on PEPs to forestall bribes or corruption being handed by means of their accounts.

They can refuse to tackle PEPs as shoppers due to the additional work they create.

Is Nigel Farage a PEP?

Mr Farage claimed Coutts stated they weren’t certain if he was nonetheless a PEP.

But after doing a topic entry request with credit score businesses, the ex-MEP stated he was advised he’s a PEP for each private and enterprise accounts.

Is that why Nigel Farage had his checking account closed?

Not based on individuals acquainted with Coutts.

A report within the BBC stated sources near the choice stated it was a “commercial” transfer.

The prestigious non-public financial institution requires shoppers to have not less than £1m in investments or borrowing – together with a mortgage – or £3m in financial savings.

Mr Farage reportedly fell under their wealth threshold.

Asked by Sky News in regards to the minimum limit, Mr Farage didn’t deny his funds didn’t attain the factors, however stated “no threshold has ever been mentioned to me”.

The financial institution, based within the late seventeenth century, has hyperlinks with the Royal Family relationship again to George III.

Coutts has refused to remark, however it’s understood the financial institution makes selections about whether or not to finish a relationship on industrial viability, reputational causes or authorized or regulatory necessities.

What about claims Nigel Farage acquired cash from Russia?

Mr Farage stated in his Twitter video that claims he had acquired cash from Russia might have resulted within the account closure.

He stated the “only explanation I can think of” for the choice was a declare made by Labour MP Chris Bryant within the House of Commons that Mr Farage had acquired almost £550,000 from Kremlin-backed TV channel RT.

Mr Farage has categorically denied the claims by Mr Bryant – which had been made below the safety of parliamentary privilege and which he has not repeated exterior the Commons.

“The truth is I’ve never received any money from any sources with any link to Russia,” Mr Farage stated.

Read extra:
‘You can bank at Natwest or HSBC like the rest of us, Nigel!’
Farage: ‘The Tories have betrayed Brexit’

What has the federal government response been?

MP Andrew Griffith, Economic Secretary to the Treasury and City Minister tweeted: “Banks should not be closing people’s accounts solely due to their status as a politically exposed person.”

He stated he had written to the Financial Conduct Authority asking them to prioritise their evaluation on this – though it has nonetheless not been established whether or not Mr Farage’s standing as a PEP has something to do along with his account closure.

The Treasury stated it was already wanting into whether or not banks had been being too rigorous in how they deal with PEPs, and ensuring UK-based politicians had been handled as much less dangerous than these in different nations.

A Treasury spokesman stated: “It would be a serious concern if financial services were being denied to those exercising the right to lawful free speech.

“We are already wanting into this problem and have handed a regulation that requires the FCA to evaluation how banks deal with PEPs – so we will strike the correct steadiness between the shopper’s proper to free speech and the financial institution’s proper to handle industrial threat.”