Last Updated: July 31, 2023, 13:05 IST
London, United Kingdom (UK)
A pedestrian carries a shopping bag while walking past the Bank of England in the City of London, Britain, July 30, 2023. (Reuters)
Uk banks are closing 1,000 accounts daily in growing de-banking row. Nigel Farage calls for royal commission
British banks are closing more than 1,000 accounts each working day, sparking a heated debate in the country over the practice known as “de-banking,” UK’s Guardian and other leading newspapers have reported. Nigel Farage, former UK Independence Party leader, has called for a royal commission to investigate what he deems a scandal.
New data obtained via a freedom of information request made to the Financial Conduct Authority reveals a significant rise in account closures, the report said. In 2016-17, just over 45,000 accounts were shut, but the number has steadily increased each year, reaching over 343,000 in 2021-22 – well over 1,000 accounts daily.
As per UK media reports, customers affected by de-banking often receive little or no explanation for the closure, with banks citing concerns over financial crimes like money laundering and fraud as reasons.
Nigel Farage, leading the campaign for people impacted by account closures, has faced personal challenges due to de-banking. He claimed that his political views played a role in the closure of his account.
I’m launching a new campaign to fight back against the big banks that have let us down.We need to understand the scale of this national scandal. Together, we can form a powerful group to lobby government.
You can visit the campaign website here: https://t.co/zm0d8IZyyU pic.twitter.com/QQXWO9FNEW
— Nigel Farage (@Nigel_Farage) July 29, 2023
The controversy led to the departure of Dame Alison Rose, chief executive of NatWest Group, and Peter Flavel, chief executive of Coutts. Farage has urged NatWest Group’s chair, Sir Howard Davies, to step down.
Several UK media reports said the current situation has raised concerns about transparency and accountability within British banks. Farage also called for a royal commission to probe the matter.
Small businesses and individuals nationwide have been affected, with many facing financial ruin. The plight extends beyond politicians, with around 90,000 individuals classified as “politically exposed persons,” potentially leading to bank rejections for politicians and their families.
