The Financial Conduct Authority is starting a review of how UK banks treat politically exposed persons in the wake of Nigel Farage’s “debanking” controversy earlier this summer.
(Bloomberg) — The Financial Conduct Authority is starting a review of how UK banks treat politically exposed persons in the wake of Nigel Farage’s “debanking” controversy earlier this summer.
The British regulator said Tuesday it will look at whether banks are carrying out their monitoring duties “proportionately and in line with risk.” The regulator started exploring banks’ additional checks to comply with global rules on money-laundering and terrorist financing in August, amid pressure from the Treasury.
A report is due by the end of June 2024, the FCA said, though the watchdog added that it will take “prompt action” if it finds significant deficiencies at lenders during its review.
“We have already persuaded some firms to improve their approach and we will use this review to identify if we need to provide further guidance to firms,” said Sarah Pritchard, executive director of markets at the FCA.
The regulator’s action comes after a political outcry when former UK Independence Party leader Farage lost his account with NatWest Group Plc’s subsidiary Coutts.
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