Bank / Credit Union

UK banks shutting down more than 1K accounts daily

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August 1, 2023

Banks in the U.K. are shutting down more than 1,000 accounts per day, often with little to no explanation to customers. With the recent shutdown of conservative commenter and former UK Independence Party leader Nigel Farage's account, he is calling for an investigation into this issue, according to a WION News report.

Farage said he directing a website to help people who have had accounts shut down by banks. A Freedom of Information request made to the U.K.'s Financial Conduct Authority revealed these statistics. From 2016 to 2017, more than 45,000 accounts were shut down, but that number rose to 343,000 accounts in 2021 to 2022.

At times, banks shut down accounts due to suspected financial crimes by the users. Others are shut down for political reasons. For example, around 90,000 people had their accounts shut down due to being "politically exposed" such as politicians or families. Banks may also close accounts due to fears of reputational damages.

NatWest's former CEO Alison Rose said the bank shut down Farage's account due to him not meeting the $1.3 million borrowing requirement. She has since stepped down after making this comment to the press.

Britain's Treasury recently announced banks would need to give an explanation as to why they are shutting down a user's account, along with a 90-day notice. However, banks can still close accounts of individuals who pose a reputational or political risk.