UK banks will be required to explain and delay a decision to close accounts under new regulations announced by the Treasury on Thursday.
The government has heeded concerns that banks are blacklisting certain clients for their political views after individuals, including Brexiteer leader Nigel Farage, said their access to finance was restricted.
“The government has taken steps to allay fears that banks are closing accounts because they disagree with someone’s political beliefs,” the Finance Department said in a statement.
On Wednesday, the Financial Conduct Authority said it was in talks with NatWest regarding handling Farage’s account.
Under the new rules, banks will have to explain any closures and customers will be given more time – 90 days – to challenge the decision via the Financial Ombudsman Service, or find a replacement bank, the Finance Department said.
“Banks occupy a privileged place in society, and it is right that we strike a fair balance between the right of banks to act in their commercial interests and the right of everyone to express themselves freely,” said Andrew Griffith, economics secretary for the Treasury Department.
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