Former minister Sir Jacob Rees-Mogg is pushing for a new law that will make it more difficult for banks to shut down people’s accounts.
It comes amid ongoing suspicion that banks have been closing customers’ accounts over their political exposure or views.
Mr. Rees-Mogg, a Conservative MP and GB News presenter, told The Telegraph that while banks have the right to block accounts, “they are doing this in far too many cases.”
With the declining of cash, an individual without a bank account is effectively a “non-citizen” or a “non-person,” he said.
According to the report, Mr. Rees-Mogg will propose an amendment to the Digital Markets Bill, that aims to stop banks from discriminating against clients.
The amendment would also compel banks to inform customers why their accounts would be closed within 30 days of their decision and give customers the right to demand compensation, the report said.
“I would hope the government will take up this amendment. This is where the Government wants to be; it is helping their policy,” Mr. Rees-Mogg said.
Nigel Farage Denied Accounts By 9 Banks
Mr. Rees-Mogg’s proposal comes as his colleague at GB News, former Brexit Party leader Nigel Farage, said he couldn’t find a bank that’s willing to hold his account in the UK.
In a video published on YouTube on June 29, Mr. Farage said his bank had told him they were going to close his account. He said the bank gave no reason for closing his account, but speculated that rules regarding politically exposed persons (PEPs) may be one of the possible reasons.
Mr. Farage also speculated that Labour MP Sir Chris Bryant’s assertion in Parliament that Mr. Farage had “received £548,573 from Russia Today in 2018” may have contributed to the banks’ unwillingness to give him an account.
In an update published on Monday, the former businessman and politician said he still hasn’t found a new bank, with nine banks having rejected his business.
British Brexit Party leader Nigel Farage speaks during a visit to Dover harbour, in Dover, Britain, on Aug. 12, 2020. (Matthew Childs/Reuters)
It’s unclear whether banks are denying Mr. Farage access to an account over PEP concerns, politicians with all parties have complained about running into difficulty with banks.
PEPs rules are international standards set by the Financial Action Task Force. They were adopted by the European Union in the form of directives, which were then incorporated into British law through secondary legislation.
The anti-money-laundering rules require financial institutions to carry out extra checks on PEPs.
While guidance (pdf) published in 2017 clarified that UK PEPs should be treated as low risk unless they pose a higher risk for other reasons, politicians have said that they still had to go through heightened scrutiny.
City Minister Andrew Griffith wrote to the Financial Conduct Authority, urging the watchdog to prioritise a review on PEP rules so they “do not unduly burden or prevent democratically elected individuals, public officials, or their respective families from access to essential banking services.”
Other De-Banking
There have been others who suspected their accounts may have been closed over their political views, although banks have denied the allegations.
In one of the most recent cases, Metro Bank emailed gender-critical parents group Our Duty, saying the bank couldn’t offer an account because it “doesn’t currently allow organisations to receive donations if not a registered charity, and for community groups to be linked to, or influence political policies or legislations.”
Our Duty founder Keith Jordan claimed that a bank manager had told him in a phone call that the group couldn’t get an account because of what it believes is in conflict with the bank’s culture, but the bank denied making any such decisions based an individual or organisation’s personal or political views.
According to the Times of London, an Anglican church leader lost his building society account after he replied to a monthly email soliciting feedback, telling the building society, which had displayed support for the so-called pride month on its website, that he didn’t agree with pushing transgender ideology on children.
The building society has also denied closing any accounts over opinions, saying they “only ever make the difficult decision to close a savings account if a customer is rude, abusive, violent, or discriminates in any way, based on the specific facts, comments and behaviour in each case.”
Triggernometry, a British YouTube show and podcast featuring interviews and satirical content about current affairs and social issues, also lost a bank account recently. According to co-host Konstantin Kisin, the bank has also cited their reception of donations as a reason.
