Banks are closing more than 1,000 accounts every working day, according to new data obtained through a freedom of information request to the Financial Conduct Authority. The figures have intensified the growing row over 'debanking' and prompted Nigel Farage to call for a royal commission to investigate what he described as a scandal.
The data, first reported in the Mail on Sunday, shows that in 2016-17 just over 45,000 accounts were shut by banks. That total has increased every year since, climbing to more than 343,000 accounts in 2021-22 – representing well over 1,000 for every business day of the week.
Nigel Farage used a subject access request to discover that his political views had played a part in the closure of his account by NatWest subsidiary Coutts. The fallout from his case led to the resignation of NatWest Group chief executive Dame Alison Rose and Coutts chief executive Peter Flavel. Farage also wants NatWest Group chair Sir Howard Davies to stand aside.
Other cases have emerged, including anti-Brexit campaigner Gina Miller, whose True and Fair party's account with Monzo is set to close in September. Energy secretary Grant Shapps revealed that he and his family had been victims of debanking because he is a politically exposed person. Shapps reportedly said one bank demanded 18 years' worth of payslips before allowing him to be a customer.
Most affected are ordinary people, including a retired social worker who had her account suddenly shut by Lloyds after doing humanitarian work in Ukraine. Some have been debanked for holding legal cryptocurrency or gambling accounts, or for receiving payments from abroad. Banks often cite money-laundering regulations as the reason but provide little explanation.
Commenting on the data, the FCA said increased monitoring by banks might explain some of the increase in account closures. There are about 75 million active bank accounts in the UK.
