The private bank Coutts is understood to have shut Nigel Farage’s bank account after he fell below the prestigious lender’s wealth requirements, raising questions over the Brexiter’s claims that the bank was targeting him over his political views.
The former Brexit party and Ukip leader has said the closure was likely to have been linked to his status as a politically exposed person (PEP) and claims in the Commons that he had received payments from Moscow’s state-funded broadcaster, Russia Today.
PEPs are generally subject to extra checks and monitoring by banks.
However, the Guardian understands the decision to close Farage’s account was linked to the fact that Coutts – which has served every member of the royal family since George IV – requires customers to hold at least £3m in savings, or borrow or invest at least £1m with the bank.
Farage told BBC Radio 4’s World at One programme: “I have been with them for a decade and at the moment I have more money sitting on current account than I have had for most of that time.”
Farage said he had first received a notice his account would be closed two months ago. It has emerged that he has since been offered a standard personal account with NatWest Group, which owns Coutts and runs the high street banks NatWest and Royal Bank of Scotland.
Farage said NatWest offered him a standard account only after he went public with his complaints last Thursday, and claimed his status as a political figure was still the root issue.
At no point in the last 10 years did Coutts give me a min threshold.
— Nigel Farage (@Nigel_Farage) July 4, 2023
More importantly, the offer of a Natwest personal acct only came after I went public last Thursday.
No business solution was offered, and they even denied I was a PEP, which is why 9 other banks have said no. https://t.co/b9egKPEWMZ pic.twitter.com/DO9yMFKzGT
“Some time ago I was informed both business and personal accounts would be closed by Coutts, without an offer of any NatWest facilities, and with no reason given,” Farage said.
“When I went public with the story on Thursday, they said a personal account, but not business, could be offered on thresholds.
“Well, it was never mentioned before, and not in writing, and they are using this new story to deny that politics and PEP status is the real reason. Most important of all is that now a total of nine other banks have also refused because of PEP status. Make your mind up who is telling the truth here.”
His spokesperson did not immediately confirm whether Farage had turned down NatWest’s offer.
NatWest Group declined to comment on the matter, which was first reported by the BBC.
Farage’s complaints have escalated into a so-called freedom of speech row, and prompted comments from government officials including the security minister, Tom Tugendhat, who said it should be “completely unacceptable” for banks to close accounts on “political grounds”.
Lucy Frazer, the culture secretary, also urged regulators to take action against banks that shut off access to people with controversial views.
The Treasury confirmed on Monday that it was already reviewing whether banks were blacklisting customers with controversial political views.
Under the new Financial Services and Markets Act, which gained royal assent last week, the City regulator will be looking at how banks deal with PEPs. That review will take place within the next 12 months.
