The British government is contemplating the introduction of new laws to safeguard free speech by preventing banks from turning away customers solely because of their political beliefs. Banks may risk losing their licenses if they decide to close customers' accounts based on their political views.
Additionally, the Treasury is said to be planning an announcement regarding an extension of the notice period given to customers for closing their accounts. This period could be extended from one month to three months. Banks would be required to provide a clear explanation for why they are closing an account, customers having the right to appeal such decisions.
This development comes in the aftermath of the closure of Nigel Farage's bank accounts by Coutts, citing a misalignment of his views with the bank's values. In response, some senior Conservative Members of Parliament have been exerting pressure on Coutts and its parent company NatWest in light of the account closures involving Farage.
During the press briefing after PMQs, Sunak's press secretary expressed serious concern, deeming it "incredibly concerning and wrong" if Farage's account was closed merely because of his political opinions. Foreign Secretary James Cleverly echoed this sentiment, emphasising that such a decision "completely undermines the trust we have in our banking and financial systems."
The Financial Conduct Authority also weighed in, announcing its intention to engage in discussions with NatWest to address the situation.