Chancellor Jeremy Hunt is preparing to intervene over banks’ powers to close the accounts of customers whose opinions they do not agree with.
The Treasury is set to roll out new recommendations and requirements to protect politically exposed persons (PEPs) from having their funds cut off for harbouring opinions deemed unpalatable.
Hunt has enlisted City minister Andrew Griffith to investigate the issue of accounts being blacklisted, and issued reassurances that regulators will be granted more jurisdiction.
It comes following Nigel Farage’s complaints that his bank accounts had been closed shortly after he picked up News Presenter of the Year at the TRIC Awards last week.
The former UKIP leader, who said he had been with the banking group for 43-years, was informed eight weeks ago that his accounts would be closed due to a “commercial decision.”
The GB News presenter also revealed that seven other banks had refused to help him open a new account.
Likewise, founder of the Reclaim Party, Laurence Fox, has lamented being “taken back to the 90’s” after banks recently closed down his accounts.
The Treasury is expected to recommend rigid notice periods for closing accounts and requiring banks to provide detailed reasons for closing accounts.
Under the current rules, banks are subject to a 30 day notice period should they intend to close personal bank accounts, but may circumvent this under “exceptional circumstances” such as suspected fraud or customer abuse and threatening behaviour.
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- Nigel Farage demands 'this madness has to stop' over concerns he is being forced out of UK
- 'Unlivable!' Nigel Farage fumes as bank closes his accounts in revenge for Brexit
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The flare up in the debate over banks’ autonomy to cut off customers’ funds follows a similar debacle earlier this year, whereby PayPal were seen to be blocking the accounts of free speech groups.
Toby Young, head of the Free Speech Union, claimed the FSU and Daily Sceptic blog’s PayPal accounts were frozen in September 2022.
At the time, Griffith met with Young and a consultation was launched, the findings of which are likely to be galvanised by the cases of Farage and Fox and are due to be published in the next few weeks.
A senior Treasury source told The Telegraph: “It is absolutely a concern. No one should have their bank account denied on the grounds of freedom of expression.
“We expect to take action on this issue within weeks.
“Banks and payment providers occupy a privileged place in society and it would be a concern if financial services were being denied to those exercising the right to lawful free speech.”
Politicians and other individuals classed as a PEP are subject to enhanced security checks by banks to ensure their finances are above board.
Supporters believe Farage’s accounts may have been flagged after Labour MP Sir Chris Bryant used parliamentary privilege to allege Farage received funds from the Kremlin.
In response to Bryant’s previous comments, Farage said: “The truth is, I did not receive a penny from any source with even a link to Russia.”
The Treasury is set top amend money laundering rules in the next 12 months to create a greater distinction between foreign PEPs and British politicians.
Hunt has also ordered the Financial Conduct Authority to review banks’s adherence to the existing guidance.
Speaking on his accounts being closed by PayPal, Young said: “I’m pleased this issue is on Jeremy Hunt’s radar, but I hope the investigation won’t take too long.
“There is no doubt that thousands of people are being penalised by banks and payment services providers for exercising their right to lawful free speech.”
He added: “The Treasury urgently needs to change the regulations to prohibit this new and sinister form of cancel culture.”
from GB News https://ift.tt/A2UIdvN
Chancellor Jeremy Hunt is preparing to intervene over banks’ powers to close the accounts of customers whose opinions they do not agree with.
The Treasury is set to roll out new recommendations and requirements to protect politically exposed persons (PEPs) from having their funds cut off for harbouring opinions deemed unpalatable.
Hunt has enlisted City minister Andrew Griffith to investigate the issue of accounts being blacklisted, and issued reassurances that regulators will be granted more jurisdiction.
It comes following Nigel Farage’s complaints that his bank accounts had been closed shortly after he picked up News Presenter of the Year at the TRIC Awards last week.
The former UKIP leader, who said he had been with the banking group for 43-years, was informed eight weeks ago that his accounts would be closed due to a “commercial decision.”
The GB News presenter also revealed that seven other banks had refused to help him open a new account.
Likewise, founder of the Reclaim Party, Laurence Fox, has lamented being “taken back to the 90’s” after banks recently closed down his accounts.
The Treasury is expected to recommend rigid notice periods for closing accounts and requiring banks to provide detailed reasons for closing accounts.
Under the current rules, banks are subject to a 30 day notice period should they intend to close personal bank accounts, but may circumvent this under “exceptional circumstances” such as suspected fraud or customer abuse and threatening behaviour.
LATEST DEVELOPMENTS
- Nigel Farage demands 'this madness has to stop' over concerns he is being forced out of UK
- 'Unlivable!' Nigel Farage fumes as bank closes his accounts in revenge for Brexit
- Furious Nigel Farage fears foul play as viral congratulatory tweet DELETED by Tric Awards
The flare up in the debate over banks’ autonomy to cut off customers’ funds follows a similar debacle earlier this year, whereby PayPal were seen to be blocking the accounts of free speech groups.
Toby Young, head of the Free Speech Union, claimed the FSU and Daily Sceptic blog’s PayPal accounts were frozen in September 2022.
At the time, Griffith met with Young and a consultation was launched, the findings of which are likely to be galvanised by the cases of Farage and Fox and are due to be published in the next few weeks.
A senior Treasury source told The Telegraph: “It is absolutely a concern. No one should have their bank account denied on the grounds of freedom of expression.
“We expect to take action on this issue within weeks.
“Banks and payment providers occupy a privileged place in society and it would be a concern if financial services were being denied to those exercising the right to lawful free speech.”
Politicians and other individuals classed as a PEP are subject to enhanced security checks by banks to ensure their finances are above board.
Supporters believe Farage’s accounts may have been flagged after Labour MP Sir Chris Bryant used parliamentary privilege to allege Farage received funds from the Kremlin.
In response to Bryant’s previous comments, Farage said: “The truth is, I did not receive a penny from any source with even a link to Russia.”
The Treasury is set top amend money laundering rules in the next 12 months to create a greater distinction between foreign PEPs and British politicians.
Hunt has also ordered the Financial Conduct Authority to review banks’s adherence to the existing guidance.
Speaking on his accounts being closed by PayPal, Young said: “I’m pleased this issue is on Jeremy Hunt’s radar, but I hope the investigation won’t take too long.
“There is no doubt that thousands of people are being penalised by banks and payment services providers for exercising their right to lawful free speech.”
He added: “The Treasury urgently needs to change the regulations to prohibit this new and sinister form of cancel culture.”
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