UK tightens rules for bank account closures after blacklisting complaints

LONDON, July 20 (Reuters) – Banks in Britain will be forced to explain and delay any decision to close an account under new rules announced by the finance ministry on Thursday. The government has been looking into concerns that banks are blacklisting certain customers over their political views, after individuals including leading Brexiteer Nigel Farage said their access to finance was being cut. The CEO of British state-backed bank NatWest NWG.L, Alison Rose, wrote to Farage on Thursday to apologise for his treatment by its private bank Coutts, after a 40-page review of his account containing extensive criticism of his views was reported by UK media. 

Rose apologised for the “deeply inappropriate” comments in a statement provided by the bank and added the lender will conduct a full review of its processes. She also reiterated the bank’s offer to Farage of an alternative account. On Wednesday, regulator the Financial Conduct Authority said it was talking to NatWest about the handling of Farage’s accounts. The government said it was acting to address fears that banks were terminating accounts because they disagreed with someone’s political beliefs. Under the new rules, banks will need to explain any closure and customers will be given more time – 90 days – to challenge a decision through the Financial Ombudsman Service, or find a replacement bank, the Treasury said. “Banks occupy a privileged place in society, and it is right that we fairly balance the rights of banks to act in their commercial interest, with the right for everyone to express themselves freely,” Economic Secretary to the Treasury, Andrew Griffith, said. Griffith said later on Twitter that he welcomed NatWest’s apology. “I welcome the recognition by NatWest Group that mistakes were made… and that banking services must never be denied due to political or personal opinions,” he said. 

(Reporting by William James and Iain Withers, Editing by Kylie MacLellan and Elaine Hardcastle)