LAST UPDATE | 20 Jul 2023
THE CHIEF EXECUTIVE of NatWest Group has apologised to Nigel Farage for “deeply inappropriate comments” made about him in official papers, saying she is “commissioning a full review of the Coutts’ processes” on bank account closures.
It comes after the former Ukip leader said his bank account was unfairly shut down by private bank Coutts, owned by NatWest Group, because it did not agree with his political views.
The NatWest Group has come under political pressure in recent days over the matter.
Dame Alison Rose said that the “deeply inappropriate comments made in the now-published papers prepared for the Wealth Reputation Risk Committee, do not reflect the view of the bank”, as she apologised to Mr Farage.
“No individual should have to read such comments and I apologise to Mr Farage for this.
“I have written to him today to make that apology and reiterate our offer of alternative banking arrangements.
In addition, I am commissioning a full review of the Coutts’ processes for how these decisions are made and communicated to ensure we provide a better, more transparent experience for all our customers in the future.
It comes after the Treasury announced that UK banks will be subject to stricter rules over closing customers’ accounts, under changes designed to protect freedom of expression.
The bank, which closed Farage’s account earlier this year, cited his retweet of a Ricky Gervais joke about transwomen and his friendship with tennis player Novak Djokovic, who is opposed to Covid vaccinations, to flag concerns that he is “xenophobic and racist”, in documents seen by MailOnline.
Rose said: “Both freedom of expression and access to banking are fundamental to our society.
“It is not our policy to exit a customer on the basis of legally held political and personal views.
“Decisions to close an account are not taken lightly and involve a number of factors including commercial viability, reputational considerations and legal and regulatory requirements.
“I fully understand the public concern that the processes for bank account closure are not sufficiently transparent. Customers have a right to expect their bank to make consistent decisions against publicly available criteria.
“Those decisions should also be communicated clearly and openly with them, within the constraints imposed by the law.
To achieve this, wider change is required. But the experience of clients highlighted in recent days has shown we need act now to put our processes under scrutiny.
The disclosures prompted a swift response from ministers, with new changes meaning that banks will have to explain why they are shutting down someone’s account.
Farage account shut
Farage – the British politician-turned-broadcaster – revealed several weeks ago that the prestigious private bank had shut his accounts with no explanation.
This week he obtained a 40-page dossier from Coutts, using a subject access request, to gain information about the decision.
Farage has insisted the Coutts documents provided “absolute proof” that his accounts were not closed for commercial reasons.
The BBC, citing “people familiar with Coutts’s move”, had previously suggested the Brexit campaigner fell below the financial threshold needed to hold an account with Coutts.
The Telegraph said the BBC report came a day after BBC business editor Simon Jack sat next to NatWest chief executive Dame Alison Rose at a charity dinner.
Asked for comment, the BBC pointed to its own reporting of the story.
Farage praises government
Farage has praised the UK government following the reports ministers are considering making new laws to stop banks closing customers’ accounts because they disagree with their political views.
The former Ukip leader said MPs are “beginning to realise that this system is coming for them as well” after his bank accounts were closed by Coutts because his views “did not align with” its values.
Speaking to the PA news agency, Mr Farage said: “Well done, the Government.
“I think this is one of the swiftest interventions I’ve seen by Government for many, many years.
“And I think that’s because this problem of the way banks have been behaving has been building up for years and years and years.
“Every MP will know of constituents, small businessmen and women who’ve literally been shut down by their banks with no reason given whatsoever.
“I also think that because of the politically exposed persons (PEPs) rule, I think they’re beginning to realise that this system is coming for them as well.”
Farage said there is “a real sense of anger” among the public who bailed out banks during the 2008 financial crisis that they “can now treat us with contempt”.
The closure of Farage’s accounts sparked outrage among many.
British Prime Minister Rishi Sunak said “this is wrong” and that “no one should be barred from using basic services for their political views”.
This is wrong.
— Rishi Sunak (@RishiSunak) July 19, 2023
No one should be barred from using basic services for their political views.
Free speech is the cornerstone of our democracy. https://t.co/8S8Rzyh9Si
Energy Security Secretary Grant Shapps said the prestigious financial institution’s decision is “absolutely disgraceful”, while Treasury Minister Andrew Griffith said it raises “serious concern”.
Home Secretary Suella Braverman said: “The Coutts scandal exposes the sinister nature of much of the diversity, equity and inclusion industry.”
Angela Knight, former head of the British Bankers’ Association, said the PEPs rule is a “grey area” that is “worthy of discussion” as she criticised Coutts’ move.
She told BBC Radio 4’s Today: “I do find it somewhat uncomfortable to see a situation arise where because of somebody’s legitimate views, even though you may not agree with them, somehow has resulted in a service being withdrawn and then not being told about it.”
Veteran journalist Andrew Neil told the same programme that Coutts “acted like a kind of political politburo rather than a bank”.
He added: “If banks want to act as political parties and have political criteria, they should publish what their political criteria is before you can have their bank account. They should also make themselves accountable to the public.”
Includes reporting by Press Association
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