A newly released data has revealed that banks in the UK are closing more than 1000 accounts every working day. This has fuelled the row over so-called “debanking”. Former UK Independence Party (Ukip) leader Nigel Farage has called for investigation by a royal commission. He termed this a scandal.
Farage has now said that he was spearheading a website in order to campaign for people whose accounts had been shut by the banks.
The new information about ‘debanking’ has been revealed in a Freedom of Information (FoI) request made to the UK’s Financial Conduct Authority. Daily Mail reported on this first on Sunday (July 30).
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The Freedom of Information request has revealed that in 2016-17, over 45,000 accounts were shut by banks.
The total number of accounts shut has reportedly increased every year. The number climbed to 343,000 accounts in 2021-22. This translated to closure of much more than 1000 bank accounts for every business day.
UK media has reported that when accounts are closed, the individuals or organisations get little or no explanation for the action. Banks sometimes say that accounts are closed due to concerns over financial crimes.
Farage discovered using a subject access request that his political views had played part in closure of his account in Coutts, a subsidiary of NatWest.
Farage’s case has already made waves. The chief executive of NatWest Group had to stand down in the wake of the controversy.
Chief executive of Coutts Peter Flavel was shown the door too. Farage has also demanded that NatWest Group’s chair Sir Howard Davies stands aside.
Farage interacted with media on Sunday and demanded an investigation by royal commission set up, “provided it happened quickly”.
“I’ve just been inundated by small businesses, by folk all round the country. People in absolute fear, terror, lives being ruined, thousands of businesses being closed. These are people who have done nothing wrong whatsoever,” Farage told GB News. He works as a president there.
The Guardian reported an estimate that almost 90,000 individuals were categorised as “politically exposed persons”. This has reportedly led to some politicians or their families being turned down by the banks.
Anti-Brexit campaigner Gina Miller has called on FCA and the government to ensure that new parties and MPs can access services from banks. Her demand has come after digital bank Monzo recently informed her that account for her True and Fair party would close in September.
Pro-Brexit groups have also reported facing same problems.
(With inputs from agencies)
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