LONDON, July 4 (Reuters) – British banks ought to need to serve a buyer even when they disagree together with his or her lawful political opinions, and may apply anti-money laundering checks proportionately, monetary providers minister Andrew Griffith mentioned on Tuesday.
Earlier on Tuesday Nigel Farage, the previous Brexit Celebration chief, mentioned British non-public financial institution Coutts had advised him it was closing his accounts and had supplied him a regular one with its mother or father group NatWest as an alternative.
Griffith was requested about his views on latest points round banking providers for politicians and different ‘politically uncovered individuals' by the Home of Lords' Financial Affairs Committee, which didn't title Farage instantly.
“If executives inside organisations maintain themselves out to be ‘match and correct', then they might not search to suppress the lawful expression of democratic views,” Griffith mentioned, referring to the conduct requirements financial institution executives should meet.
“When it comes to lawful freedom of expression, it is not proper that anybody could be debanked on these grounds, that's not acceptable,” he added
The politically exposed persons regime is a part of world anti-money laundering guidelines that require banks to carry out checks on people with distinguished political features.
Griffith mentioned Britain's Monetary Conduct Authority (FCA) now had powers below a brand new monetary providers legislation authorized final week to revisit these guidelines.
“The Chancellor and I've requested the FCA to do exactly that, to overview the applying of these guidelines for unintended penalties that may all the time occur once you put an obligation of care on a person establishment. Typically that may go too far,” Griffith mentioned.
The foundations must be utilized proportionately and never in a blanket method, he added.
“The second factor that we have requested is that the FCA have a look at making a home politically uncovered individuals (class) to mirror the decrease class of threat related to these whose affairs are wholly home,” Griffith mentioned.
Reporting by David Milliken, Enhancing by Huw Jones and Mark Potter
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