British banks have the ability to close accounts where they see fit - and it can be down to a number of reasons.
Banks are able to identify these accounts through third party databases and credit reference groups that gather information on people they suspect of illegal activities such as fraud or terrorism.
These databases monitor British customers and hand information over to banks so they can decide what to do if someone is deemed a "risk" regarding bad credit and those who could be a "risk" to the bank and its reputation.
This news has made headlines over the following days after former UKIP leader Nigel Farage accused the private bank Coutts of closing his account due to his political beliefs.
However, the BBC reported that the former Member of the European Parliament (MEP) had his account closed because his funds fell below the financial threshold required to hold an account.
The former leader of the Brexit Party did not "dispute" the BBC's report telling the publication that "they didn't have a problem with it for the last 10 years".
Who is watching our bank accounts?
According to a report by The Telegraph, one third party database British banks are using to keep track of its members is World-Check Risk Intelligence, which is owned by Refinitiv, a member of the London Stock Exchange Group.
The Refinitiv website says the firm is a risk intelligence database which helps organisations across the world "meet their regulatory obligations".
This includes flagging accounts which are under suspicions of being linked with terrorism, money laundering, or corrupt business practices.
If someone is on a sanction list somewhere in the world, they will also appear on this database.
If someone has a so-called "bad banking record" or is suspected of a serious offence then they will also likely feature on the database.
This data is passed onto the bank's compliance team which will use the information to make their decision on whether to terminate the account.
World-Check would not disclose which banks use its database to the Telegraph.
Why can a bank close your account?
If your bank is closed because it is believed to be linked to criminal activities, it will likely be done with little notice.
If this happens, then there is a good chance you will not be able to hold another bank account with another British bank.
If you have your account closed for a less serious reason, then you will likely receive 30 days' notice before it is closed.
If a bank wants to investigate your account, then it may be frozen and you may be asked to provide further information for their case.
An account can also be closed if the account holder has a bad credit history and loans or credit are not repaid.
If your account is closed, then it normally would not affect your credit rating however if you have an outstanding overdraft or loan when it closes then this info may be passed over to a debt and credit recovery agency - which can affect your score.
Accounts which payments frequently bounce from and those that sit empty for several years can be closed.
The Financial Ombudsman Service (FOS) website says banks can close accounts whenever they want, but they still have to treat their customers fairly.
What can I do if a bank closes my account?
In most circumstances, once a bank account is closed it can't be reopened.
You may be able to open a new account with your bank depending on why it was closed however you may need to bank somewhere else.
If you are unsure why your account has been closed then you should contact your bank, they may be able to explain to you why the account has been closed, if it can be reopened and how you can get any money that may have been left in it.
Your account can also be closed if the owner has been a victim of fraud or theft.
According to Citizens Advice, a bank should refund any money stolen as a result of fraud and identity theft and they should do this as soon as possible, ideally by the end of the next working day after the problem is reported.
Although, the bank can refuse this refund if they find the owner of the account has acted "grossly negligent" for example shared their pin with someone else.
You can also complain to the bank, and to the Financial Ombudsman Service if you believe the closure is unjust or unfair.
The Mirror has contacted London Stock Exchange Group for comment.
