Banks in the United Kingdom are closing more than one thousand private and business accounts every day, according to data obtained by a freedom of information request, which revealed the increasing regularity of the measure against both politically exposed persons (PEPs) and ordinary members of the public.
The total number of account closures exceeded 343,000 in 2022 alone, representing an enormous increase in the use of the measure compared to 2016-17, during which around 45,000 accounts were shuttered. Worse yet, banks often fail to explain why they are closing an account. Instead, they merely inform customers that the account has either closed or will close in the coming months.
Brexit leader turned TV presenter Nigel Farage – whose bank account with Coutts was recently closed due to his political opinions not “aligning” with the bank’s – is now leading a campaign against “debanking” in the UK. Since launching his campaign website, Farage explains:
“I’ve just been inundated by small businesses, by folk all round the country. People in absolute fear, terror, lives being ruined, thousands of businesses being closed. These are people who have done nothing wrong whatsoever.”
– Nigel Farage, 2023.
“I want this to be a turning point in this whole appalling behavior from banks. Whether it’s high-profile figures or people running a fish stall, what has happened within this industry is wrong,” Farage adds.
The British government has condemned banks for closing accounts and is proposing new legislation that would revoke banking licenses from the organizations that close the private accounts of public figures.