Nigel Farage with his Coutts bank card. Photo: Julian Simmonds for The Telegraph. p>
Senior MPs said Dame Alison Rose should “take responsibility” after documents showed Mr Farage was targeted by Coutts, a NatWest subsidiary, because of his political views.
The Telegraph can report that Dame Alison was sitting next to Simon Jack, BBC business editor, at a charity dinner the night before when Mr Jack wrote an article alleging that Mr. Farage was bankrupted for “commercial” reasons.
Both the BBC and NatWest declined to comment or answer any questions about the dinner.
Reacting to news that Mr Jack and Dame Alison had been dining together before the BBC published their story, Mr Farage said: “They are all part of the same elite Remainer club in the capital.”
Suella Braverman, Home Secretary, called Mr Farage's blacklisting “ominous” and Rishi Sunak vowed to “take tough action” against banks that are refusing to bank customers simply for exercising their right to free speech.
Natwest and other corporations that have naively embraced this politically biased dogma need a major rethink. This is also a problem for the public sector, which is why I am reviewing our policy at the Home Office. 2/2
— Suella Braverman MP (@SuellaBraverman) July 19, 2023
The Telegraph understands new laws could be announced as early as Thursday to prevent banks from turning down customers based on their views or beliefs.
It is understood that plans are also being made that could mean revoking banks' licenses if they target customers because of their views.
On Wednesday, the Financial Conduct Authority said it had been in contact with NatWest and the Treasury Secretary is believed to have spoken to Dame Alison.
Mr Farage accused Coutts of being more interested in imposing a wake program than in ensuring the greatest value for its shareholders, including the British public.
The NatWest Group, of which Coutts is a subsidiary that offers private banking services to the wealthy, is 39% taxpayer owned. after being bailed out by the Labor government during the 2008 financial crisis.
Dame Alison is facing questions about whether she was sent a dossier on Mr Farage saying his views “do not align with our values” before the decision was made to close his accounts.
Peter Bone, former Conservative Deputy Leader of the House of Commons, said: “To say she has serious questions to answer is an understatement.
“Mrs Alison is the head and the person at the top usually takes charge when the company has done something terrible. In that case, she should go.”
David Jones, a former Cabinet minister, said: “The dollar stops at the top. I definitely think she should go, she was in charge of it. This is a disgrace to banking.
“There was no compelling financial reason to remove Nigel Farage's account, and it's clear from the documents that this was just plain censorship. Frankly, this looks like nonsense on the part of some Coutts officials.”
MPs called on Dame Alison to leave because of the scandal. Photo: Dominic Lipinski/PA Dame Alison and Mr Jack sat together at a BBC correspondents' benefit dinner at London's Langham Hotel on 3 July, the day before Mr Jack published an article on the BBC website saying that Mr Farage had been turned down because his finances did not meet the threshold set by Coutts. The article cites “people familiar with Coutts' move”.
Nikhil Rathy, chief executive of the Financial Conduct Authority, told a special committee at the Treasury Department that the leak of Mr. Farage's finances to the BBC was “a cause for concern.”
Lord MacPherson, a fellow Conservative and former permanent secretary at the Treasury, told Andrew Marr in an interview with LBC that he was concerned that the bank had commented on Mr Farage's finances. When asked if the country was in danger due to the closure of Mr Farage's bank account, Lord Macpherson said: “I think this is a worrying development.
“I'm also concerned that the bank has publicly commented on Mr. Farage's income and wealth, at least he appeared in brief newspapers last week or the week before.
“And I think the government is responding to a wider concern among all of us. It's hard enough to get good service from your bank at the best of times, but if they're just going to make seemingly arbitrary decisions about your beliefs or policies, I think that's a pretty dangerous development.”
'If banks are going to make arbitrary decisions about your beliefs or policies, I think that's a pretty dangerous development'.
Former Treasurer @nickmacpherson2 says Ni gel Farage's revelations are worrying.
See full interview with @AndrewMarr9 at 6pm ⬇️ pic.twitter.com/bwKS3JZKYA
— LBC (@LBC) BC) July 19, 2023
Speaking at the Prime Minister's Questions, David Davies, former Brexit secretary, accused NatWest of lying about the reason for closing Farage's account.
He said: “NatWest disclosed confidential information about Farage's account to the BBC and lied about the commercial viability of his account, actions that should jeopardize his banking license and should certainly worry NatWest's 19 million other customers.”
Coutts compiled a background dossier on Farage published by The Telegraph that addressed everything from his views on Brexit, immigration and LGBT rights to his friendship with Donald Trump and Novak Djokovic.
Coutts' complete dossier on Nigel Farage
He was labeled a xenophobe and racist, and the bank's reputational risk committee concluded that his views were not “consistent” with the “values or objectives of the bank.”
Mr. Sunak responded to The Telegraph's disclosure of the dossier by saying:
This is wrong.
No one should be banned from basic services for their political views.
Freedom of speech is the cornerstone of our democracy. https://t.co/8S8Rzyh9Si
— Rishi Sunak (@RishiSunak), July 19, 2023
He was previously asked in the House of Commons by Sir Jacob Rees-Mogg if he shared the former Business Secretary's “concern” about developments, to which the Prime Minister replied, “It would be wrong if financial services were denied to anyone exercising their right to legitimate free speech.” ef59cca.jpg” />
Andrew Griffith, city minister, spoke to Dame Alison on Tuesday evening to let her know the government was concerned and ask her what was going on.
Mr. Griffith is also considering forcing banks to disclose how many accounts are closed each year for non-financial reasons.
He made clear that banks could lose their licenses if they unfairly target customers, stating:
It would be a major concern if financial services were denied to anyone exercising their right to legitimate free speech.
Businesses are entitled to reputational risk protection, for example. criminal activity – but the privilege of a banking license in a democratic society should…
— Andrew Griffith MP (@griffithha) July 19, 2023
According to Whitehall sources, Mr. Griffith has asked civil servants to look into adding free speech protections to banking licenses.
The move would mean that any bank that discriminates against a customer because of its political opinions could be revoked.
Separately, payment service providers and banks will be told as early as Thursday that they must not discriminate against customers based on their beliefs.
The Treasury is preparing to enforce this law by strengthening the powers of the Financial Conduct Authority. Business principles.
The sixth principle, which states that “a firm must give due regard to the interests of its clients and treat them fairly,” will be updated to refer to political opinions, insiders said.
It will also say that banks must notify banks three months in advance of the termination of services, and proper notice must be provided so that an appeal can be filed.
Mr. based on political views.
He said if Mr. Farage contacts the Financial Ombudsman Service and rules against the bank, the FCA could investigate.
Coutts, a subsidiary of NatWest, has been harassing Nigel Farage because of his political views. Photo: Julian Simmonds for The Telegraph
Mr Farage said he hasn't had time to write to the ombudsman yet, but he will.
Speaking about freedom of speech, Mr. Rati said: “Anyone who believes that their bank has treated them unfairly can contact the Financial Ombudsman Service, which will review the information provided by the bank and the client and can instruct the bank to reopen the account if they believe that the client has been treated unfairly.” This is required by law.
“As you might expect, we are talking about this with the NatWest Group.”
He said that if Mr. Farage’s complaint is upheld by the Ombudsman, “of course it will matter to us in terms of oversight.”
Mr Rati added: “We would obviously be concerned if they breached data protection.”
“Absolutely shameful”
Faraj is believed to be just one of thousands of people who have been denied bank accounts for political reasons. Among them are the children of obscure conservative peers who were told they couldn't have a bank account after being asked about their parents.
Calls are now being made for the senior management of Coutts and NatWest to appear before a parliamentary committee to explain their actions, their policies and the extent of the debanking scandal.
Grant Shapps, energy secretary, said: “I think this is absolutely disgraceful. I don't have to agree with everything Nigel Farage says to admit that freedom of speech is a very important part of our family life.
“What happened to some of these banks thanks to this regime, known as the regime of politically exposed persons, is really outrageous.
“People should not close their bank accounts because of their political or any other views. And banks should not refuse to open accounts on this basis.”
Speaking to Evan Davies on Radio 4 PM, Anthony Brown, a Conservative MP and former chief executive of the British Bankers Association, said: “It would be so chilling to freedom of speech in this country if basically bank managers turned into censors and started controlling people and dictating what is right thinking and what is wrong. This is a real abuse of power by the bankers.”
He went on to say, “Losing a bank account is incredibly serious. Often, if you lose an account with one bank, it will be very difficult for you to open a new account with another bank. It is very difficult to survive without a bank account in today's society.”
Starmer refuses to support Farage
In the House of Lords, Mr Farage was supported by three Labor colleagues, including Lord Blunkett, the former Home Secretary, who said: “I'm all for the government protecting the rights of Coutts One.”
But Sir Keir Starmer, Labor leader, refused to speak in support of Mr Farage. A spokesman for the Labor leader said the situation was “disputed” and inappropriate to comment on.
Lord Lamont, the former chancellor, asked the government to ensure “the case is referred to a regulatory authority and investigated”.
He said: “It is not for the bank to judge whether someone's personal political views are in line with the so-called values of the bank – this is not a reason to close an account.
“Equally it is not for the bank to judge whether someone's views are at odds with the wider society, and then use this as an excuse to close the account.”
“Isn't this a fundamental question that should concern every party – left, right, center or flat earth – who can be next, who will suffer from what is happening?”
A spokesman for Coutts said: “We recognize significant interest in this case. We cannot comment on the details given our commitment to customer privacy.
“However, it is not Coutts policy to close customer accounts based solely on legitimate political and personal opinions.
“Decisions to close an account are not easy to make and involve a number of factors, including commercial viability, reputational considerations, and legal and regulatory requirements.
“We recognize the critical importance of access to banking services. When it became clear that our client could not get banking services elsewhere, and, as he publicly confirmed, he was offered alternative banking services at NatWest. This proposal remains in effect.
“We understand the public's concern that the processes for terminating a relationship with clients and how they report it are not transparent enough. We welcome the forthcoming advice from the UK Treasury in this area, and the request to prioritize the review of the PEP regulations.
“We look forward to working with the government, the regulator and the wider industry to ensure that universal banking remains.”
Mr Farage, however, disputed the claim that NatWest offered him alternative banking services, saying he received nothing in writing, only a verbal offer to open a checking account, with no offer of a commercial account.
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