Treasury meets with bank chiefs over a row over Farage

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By Tom Espiner and Noor Nanji Business correspondents, BBC News Jul 23, 2023 12:32 BST

Updated 23 minutes ago

Image source, Getty Images

The Treasury has called a meeting with bank chiefs about closing accounts, in the wake of the row between Nigel Farage and NatWest.

Minister Andrew Griffiths said there were “significant concerns” about claims accounts being closed due to people’s political views.

Natwest’s chairwoman, Ms. Alison Rose, has apologized to Mr. Farage, who has called her in for questioning by deputies.

He says his Coutts account, which is owned by NatWest, was closed because of his views.

The government was already looking into concerns that some people’s accounts might be closed or suspended for their stated views, but a row involving the former Ukip leader has focused public attention on the allegations.

In a letter to banks seen by the BBC, City Minister Andrew Griffiths said recent allegations of “clients’ banking transactions being canceled” had “caused great concern in both Houses of Parliament”.

He said the government would “take the necessary measures” to protect legal freedom of expression.

The BBC understands that Griffiths’ letter will be sent to 19 banks and financial services companies on Monday.

He said he would call for a discussion with the heads of the banks “at the earliest opportunity”.

The government’s latest response comes after the Treasury announced plans to place British banks under stricter rules on closing customer accounts.

Banks will have to explain why they are closing accounts, and they will have to give a 90-day notice period before an account is closed, to give people more time to appeal against the decision.

The new rules are likely to be implemented after the summer, the BBC understands.

Banks will have to tell customers why their accounts were closed – and provide at least 90 days’ notice, to make it easier for customers to challenge the decision.

When Coates decided to close Mr Farage’s account, he said he did not give him a reason.

Mr. Farage then obtained a document examining his suitability as Coutts’ client.

It said having Mr Farage as a client was inconsistent with Coutts’ “position as an umbrella organization” given his “publicly stated views”.

The document cited concerns that he was “xenophobic and racist”, and also raised concerns about the reputational risks of Mr Farage’s presence as a client.

NatWest Group Director Ms Alison Rose then apologized to Mr Farage for what she called the “extremely inappropriate” comments.

It also said it was commissioning a full review of Coutts’ operations on closing bank accounts.

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