Fallout from ‘debanking’ scandal suggests more U.K. bank reforms coming
By 
Neil Hodge2023-09-12T15:00:00
A banking boss’s decision to leak client details to a journalist is likely to cost the industry millions in new compliance checks as U.K. regulators prepare reviews into how banks treat people with extreme political views and whether they are subject to excessive and illegal monitoring.
NatWest’s now-former Group Chief Executive Alison Rose broke the most basic rule on confidentiality and told a BBC reporter that Nigel Farage—the U.K.’s face of Brexit and anti-immigration—had his bank account canceled because he didn’t meet the necessary wealth criteria.
Farage was a customer with Coutts bank, a financial institution that advises account holders be able to borrow at least 1 million pounds (U.S. $1.3 million) or hold £3 million in savings (U.S. $3.8 million) with it. Coutts is part of the NatWest Group.
Related articles
-
PremiumExperts: ICO apology to ex-CEO does not absolve NatWest of GDPR liability
Just because Alison Rose received a public apology from the U.K. Information Commissioner’s Office regarding the suggestion she might have violated the General Data Protection Regulation doesn’t mean NatWest could avoid sanction.
-
News BriefFCA flags potential regulatory breaches at NatWest regarding Farage scandal
An independent review into how NatWest handled the closure of politician Nigel Farage’s Coutts account uncovered potential regulatory breaches by the bank that are on the radar of the U.K. Financial Conduct Authority.
-
PremiumBank privacy processes questioned after U.K. ‘debanking’ scandal
The furor over NatWest Group’s decision to monitor and close the account of right-wing Brexit campaigner Nigel Farage—and then disclose the details to a journalist—has raised questions regarding whether other banks employ the same means to get rid of undesirable customers.
More from Opinion
-
OpinionAI adoption without trust: A call for compliance professionals
Employees are adopting AI faster than companies can build policies, governance, and training. That gap creates compliance exposure in areas from data privacy to shadow IT to workplace equity.
-
NewsThe Banks behind Jeffrey Epstein: Why the story matters now more than ever
The Epstein case remains a defining moment for financial institutions. As new investigations bring renewed attention to his enablers, Compliance Week’s 2024 case study offers not only a timeline of failures but a path forward. Here’s what banks, regulators, and compliance teams must learn from it.
-
OpinionA friend for the compliance officer: Co-thinking with AI
At their core, compliance officers are problem-solvers. They wrestle with thorny questions every day: How do we implement a global gifts-and-entertainment policy across jurisdictions with vastly different cultural norms? How do we balance business pressures with anti-corruption obligations? How do we address new risks like AI itself?