UK Regulator Probes NatWest and Coutts Bank Over Account Closures

The U.K. Financial Conduct Authority disclosed Friday that it is investigating U.K. lender NatWest and its subsidiary, Coutts Bank, over possible breaches of rules related to account closures and data protection.

In a statement, the regulator said it is reviewing the banks' "governance, systems and controls" following revelations in July that private lender Coutts sought to cut ties with the Brexit campaigner Nigel Farage partly because he stood at odds with the company's "position as an inclusive organization."

NatWest said in an earnings report Friday that a law firm's review of Coutts' handling of Farage's account closure concluded that the decision itself was lawful—and that it was "predominantly" taken for commercial reasons—but that there had been "serious failings" in the bank's treatment of the former lawmaker.

The way the decision was communicated to Farage violated the bank's policies for "non-financial crime exits," as no "adequate" reasons were given for the move, while former NatWest chief executive Alison Rose "probably" breached data rules when sharing details about the move with BBC News, the bank said.

• Topics: Governance and Reporting, Anti-Money Laundering and Countering the Finance of Terrorism, Financial Crime Controls
• Source: United Kingdom: Financial Conduct Authority
• Document Date: October 27, 2023