Nigel Farage has found a prominent ally amid claims his bank shut down his account because he was “politically exposed”.
Jacob Rees-Mogg has launched a push to stop banks shutting down individuals’ accounts because they are a “politically exposed person”, a move designed to ensure politicians can’t take bribes or launder money but is increasingly appearing to target those representatives with controversial views.
Sir Jacob has announced he will try and amend the forthcoming Digital Markets Bill to prevent banks from blacklisting customers like Mr Farage.
Jeremy Hunt has already ordered an investigation by City Minister Andrew Griffith into the controversy.
Sir Jacob told the Telegraph: “It is right for banks to block the accounts of individuals. The problem is they are doing this in far too many cases”.
“On an individual basis, it might be reasonable, but it keeps happening and makes you think banks have an agenda.
“Without a bank account you are a non-citizen because we don’t have protection of cash in this country.
“Many shops no longer take cash. If you don’t have a bank account you are a non-person. You would hope the Government is sympathetic to this amendment.”
Over the weekend it emerged Jeremy Hunt was refused an account with Monzo last year, with the Chancellor saying it was an example of the “barriers” faced by those wanting to work in public life.
Mr Hunt believes he was also denied the account because he was a “politically exposed person”.
“If the price of going into public life is that you find it really hard to set up a bank account, then we need to make sure that we remove barriers where we can.
“I think that’s why I was declined by Monzo for an account last year.”
Security Minister Tom Tugendhat has also said it should be “unacceptable” for banks to close accounts on “political grounds”.
The Treasury has said: “It would be a serious concern if financial services were being denied to those exercising the right to lawful free speech.”
The Digital Markets Bill is currently working its way through the Commons after being introduced in April.
Sir Jacob’s amendment would require banks to provide customers with a written statement of their reasons for closing the account within 30 days of their decision.
The customers would also have a right to damages for financial loss, emotional distress and physical inconvenience and discomfort if the bank acted in breach of its obligations.
The paper also claims a vicar was recently dropped as a customer after criticising his lender’s stance on LGBT issues.
