City minister summons financial institution bosses over ‘de-banking’ after Farage account closure

Bank chiefs have been summoned by City Minister Andrew Griffith to debate how prospects will be shielded from being “de-banked” after Coutts terminated its relationship with Nigel Farage.

Mr Griffith is predicted to write down to the bosses of 19 banks, constructing societies and digital challengers warning that the federal government will “take all action necessary” to crack down on accounts being closed in response to prospects’ political beliefs.

He stated that rules round politically uncovered individuals, or PEPs, are “being applied in a disproportionate manner by some financial institutions”.

It comes after the former UKIP and Brexit Party leader obtained a 40-page file from the personal financial institution Coutts – which is owned by NatWest Group – indicating that his checking account was closed as a result of his views did not align with the firm’s “values”.

Mr Farage stated the financial institution regarded him as “xenophobic and racist” and a former “fascist” and accused the NatWest Group of passing his personal and financial data to the BBC.

Last week, the Treasury introduced reforms designed to provide prospects larger protections, give them extra time to problem selections or to search out alternative banks.

New measures embody making banks clarify why they’re shutting an account, and increasing the discover interval from 30 days to 90 days.

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While the reforms have but to be enacted legally, they seem to have been accelerated in response to Mr Farage’s expertise, which sparked outrage amongst senior Tory MPs.

Mr Griffith has instructed banks together with NatWest, Lloyds Banking Group, Santander and HSBC that the federal government “expects” that “firms should seek to take action on this policy as soon as possible and make best endeavours to implement” it.

Other chief executives anticipated to be referred to as embody these at TSB, Metro, Allied Irish, Danske Bank and Bank of Ireland, whereas the heads of digital finance outfits at Monzo, Starling, Chase, PayPal, Revolut and Wise can even be referred to as to the Treasury.

In his letter Mr Griffith says: “I am calling a roundtable at the earliest opportunity to hear your views on how you and your firms will ensure that customers can access payment accounts without fear of being de-banked for their lawful expression, and necessary actions to be taken to implement the reforms announced.”

Mr Farage obtained an apology from NatWest chief government Dame Alison Rose for “deeply inappropriate comments” about him in official papers.

In a press release on 20 July, Coutts stated its coverage doesn’t “close customer accounts solely on the basis of legally held political and personal views”.