Proactive Investors - The Nigel Farage-Coutts controversy is showing no signs of abating, with the NatWest (LON:NWG) Group-owned elite private bank today pushing back against claims by the former UKIP leader that his account shut down on political grounds.
Farage has adamantly contested that his Coutts account was closed because his views "did not align with (the bank’s) values".
Farage has cited his friendship with tennis player Novak Djokovic, known for his anti-vaxx stance, and Farage’s retweeting of offensive jokes from British comedian Ricky Gervais, as reasons for being blacklisted.
A 40-page dossier obtained from Coutts at Farage’s request appears to express concern for Farage’s associations with Donald Trump, Russia, climate-change denial and other politically contentious issues.
“From an international affairs perspective, NF’s reputational harm to the bank could stem from two areas. First, any relationship with Putin’s regime, or endorsement of the illegal invasion of Ukraine,” it read.
However, the dossier went on to state: “We haven’t found evidence of the former (beyond ‘useful idiot’ admiration) and his comments about the invasion fall short of endorsement.”
It said: “In terms of any potential connections to Russia, NF had not been sanctioned and had no known direct/indirect Russian connections. terms of any potential connections to Russia, NF had not been sanctioned and had no known direct/indirect Russian connections.”
“A second area would be his broad attitude to foreign countries and their peoples. Here, it’s clear to me that NF has – and projects – xenophobic, chauvinistic and racist views, even though this is done within the law, or framed with sufficient ambiguity to claim malicious misquoting from his critics.”
The statements in the dossier were attributed to NatWest chair Howard Davies.
Coutts has now issued a statement acknowledging the “substantial interest” that the controversy has generated, while reiterating the bank’s stance that the closure of Farage’s account was not necessarily made on political grounds.
“It is not Coutts' policy to close customer accounts solely on the basis of legally held political and personal views,” said Coutts.
Continuing: "Decisions to close an account are not taken lightly and involve a number of factors including commercial viability, reputational considerations, and legal and regulatory requirements.
"We recognise the critical importance of access to banking. When it became clear that our client was unable to secure banking facilities elsewhere, and as he has confirmed publicly, he was offered alternative banking facilities with NatWest. That offer stands.
"We understand the public concern that the processes for ending a customer relationship, and how that is communicated, are not sufficiently transparent."
The issue has become a major political football, with prime minister Rishi Sunak and a slew of MPs expressing concern over the matter.
“This is wrong. No one should be barred from using basic services for their political views. Free speech is the cornerstone of our democracy,” Sunak Tweeted.
This is wrong.No one should be barred from using basic services for their political views.
Free speech is the cornerstone of our democracy. https://t.co/8S8Rzyh9Si
— Rishi Sunak (@RishiSunak) July 19, 2023
The government has warned that banks face having their licences revoked if they are proven to be discriminating customers on political grounds.
“Well done, the Government,” said Farage.
“I think this is one of the swiftest interventions I’ve seen by Government for many, many years,” he told the PA news agency in an interview on Thursday. “And I think that’s because this problem of the way banks have been behaving has been building up for years and years and years.
The row has sparked a debate around supposed ‘ethical’ capitalism, with home secretary Suella Braverman, accusing NatWest Group of “politically biased dogma”, claiming “the Coutts scandal exposes the sinister nature of much of the Diversity, Equity & Inclusion industry”.
Proactive has reached out to Farage for further comment on the situation.