Proactive Investors - Britain’s 19 largest banks are expected to receive a letter today warning them that the government will “take the action necessary” to protect free speech following the controversial closure of former UKIP leader Nigel Farage’s Coutts account.
Coutts, the exclusive bank owned by NatWest Group PLC (LON:NWG), has been embroiled in a full-on public relations crisis after Farage’s de-banking on grounds that he did not align with the royal bank’s values.
In a 40-page dossier given to Farage following an access request, Coutts took aim at his links to Russia, xenophobic rhetoric, his friendship with tennis player Novak Djokovic, known for his anti-vax stance, and even his retweeting of offensive jokes from British comedian Ricky Gervais.
City minister Andrew Griffith has expressed "significant concern" over the closure of Farage's bank account and has summoned banking heads to a roundtable discussion to seek assurances that customers can access payment accounts without the fear of being de-banked for their lawful expression.
All of the major British banks, including Lloyds Banking Group PLC (LON:LLOY), Barclays PLC (LON:BARC) and NatWest, are expected to be summoned.
Last week, the Treasury announced new rules requiring banks to explain the reasons for shutting down accounts.
Previously, they were not obligated to provide any rationale for such actions. As part of the upcoming changes, which are expected to be implemented in the autumn, the notice period for forced account closures will be extended from 30 to 90 days.
In his Monday letter to bank bosses, Griffith acknowledged concerns about the application of regulations regarding ‘politically exposed persons’ (PEPs), referring to political representatives and their family members, whose accounts may receive extra due diligence from financial institutions.
Griffith stated that it seemed these regulations were being applied disproportionately and should only relate directly to money laundering and anti-corruption, not serve as grounds for account closure based on political views.
Dame Alison Rose, chief executive of NatWest Group, has since apologised to Farage for the de-banking.
Farage has also demanded an apology from the BBC for what he deemed as incorrect reporting over the controversy.