Review urged into closing of bank accounts

A reappraisal into whether banks are closing accounts of radical who are "politically exposed" should beryllium prioritised, a Treasury curate has said.

In a missive to the Financial Conduct Authority, Andrew Griffith said it was captious elected officials and their families could entree banking services.

It comes aft Nigel Farage said his relationship was being shut due to the fact that helium was "politically exposed" - thing radical acquainted with the determination dispute.

The FCA has been contacted for comment.

Someone classed arsenic a politically exposed person, oregon PEP, mostly presents a higher hazard for fiscal institutions arsenic they are deemed to beryllium much exposed to imaginable engagement successful bribery and corruption by virtuousness of their presumption and the power they whitethorn hold.

As a result, banks are required to bash other owed diligence connected PEPs.

Mr Griffith, who is Economic Secretary to the Treasury, said successful his missive to the fiscal watchdog that portion helium recognised the value of measures to forestall wealth laundering, "it is important that an due equilibrium is struck" truthful that elected officials and their families tin entree banking services.

He added that it had been "made clear" that "some fiscal institutions whitethorn beryllium failing to onslaught the close equilibrium of taking a proportionate attack based connected a cautious valuation of the existent risk".

"The authorities is wide that home PEPs should beryllium treated successful a mode which is successful enactment with their risk, and that banks should not beryllium closing individuals' accounts solely owed to their presumption arsenic a PEP," Mr Griffith said.

This week, Mr Farage, who is the erstwhile person of UKIP, the Brexit Party, and a erstwhile subordinate of the European Parliament, said his slope was closing his accounts without justification.

He said helium believed his relationship was being unopen due to the fact that of his presumption arsenic a PEP and that helium had since been turned down by 9 different lenders.

On Tuesday, Mr Farage did not quality the information that helium did not conscionable Coutts' threshold, but added: "They didn't person a occupation with it for the past 10 years."

He added: "Are you telling maine that each the different banks accidental it was a PEP happening and Coutts wasn't? Draw your ain conclusions."

The Treasury has antecedently said it would beryllium a "serious concern" if fiscal services were being denied to those exercising their close to lawful escaped speech.

A spokesperson said: "We are already looking into this contented and person passed a instrumentality that requires the Financial Conduct Authority to reappraisal however banks dainty politically exposed persons - truthful we tin onslaught the close equilibrium betwixt the customer's close to escaped code and the bank's close to negociate commercialized risk."