A number of peers have said their children were either denied a bank account or ran into trouble because of their parents’ political career.
It comes after broadcaster and former Brexit Party leader Nigel Farage said his bank was shutting down his account and that he was denied an account by six or seven other banks. Mr. Farage also said he may be forced to leave the UK if he can’t find a bank.
While the reason of Mr. Farage’s account closure has not been confirmed, the incident has drawn increased scrutiny over anti-money-laundering rules that require financial institutions to carry out extra checks on “politically exposed persons (PEPs).”
Four peers told The Telegraph about how their family members were affected.
Conservative peer Lord Kirkhope said one of his sons’ applications for a bank account had gone “swimmingly” until someone contacted him and asked if he was ‘by any chance related to a Lord Kirkhope.’”
The application was denied two weeks later, Mr. Kirkhope told the publication.
Liberal Democrat peer Lord Sharkey said NS&I, a state-owned savings bank, wrote to him to demand “very much more detail” about his finances and sources of funds and sent “the same letter” to his three children who didn’t have any accounts with the bank.
Surprised, Mr. Sharkey complained to the bank, which told him it would have to close his account unless he complied, according to the peer.
Six-Page Questionnaire
In 2021, Mr. Sharkey told the House of Lords that Nationwide had sent his daughter a six-page questionnaire, and told her that her account would be closed unless she filled out the form.Baroness Hayter of Kentish Town, a Labour peer who was also sent the six-page document, complained that it was “ridiculous.”
The questionnaire “[wanted] to know about my past employers, my family wealth—I have not got any—my lottery wins, my jewellery, and not just my car but “cars;” I have only got one,” she said, adding that “many peers had told her ”they and their families have been similarly inconvenienced.”
Baroness Kramer, also a Liberal Democrat peer, told The Telegraph she has withdrawn her application to open an account with Chase UK after the bank asked for proof of income from her husband, who “died 17 years ago.”
She also said her sister-in-law also triggered the heightened check when trying to open an account in the United States.
The PEP rules are international standards set by the Financial Action Task Force that was adopted by members, including through directives in the European Union. The EU directive was then incorporated into British law through secondary legislation.
Lord Forsyth, also a Conservative peer, said he and his daughter were both customers of Coutts, but his daughter was asked to move her account elsewhere.
“Is there any chance that you could move to another bank because you are such a pain to look after because your dad is a politically-exposed person?'” Mr. Forsyth claimed a bank manager asked his daughter.
It’s unclear how the matter was resolved, The Epoch Times has reached out to Forsyth and Coutts.
Mr. Farage’s account, which he said was set to be closed, was also with Coutts. In a video published on YouTube last week, he said the bank gave no reason for closing his account, but speculated PEP rules may be one of the possible reasons.
The BBC later cited unnamed sources saying Mr. Farage didn’t meet the bank’s requirement to borrow or invest at least £1 million with the bank or have £3 million in deposit. But Mr. Farage told the broadcaster that the bank “didn’t have a problem with it for the past ten years.”
The Financial Services and Markets Act, which became law last week, requires the Financial Conduct Authority (FCA) to conduct a review into its guidance on PEPs.
City Minister Andrew Griffith wrote to the FCA chief executive Nikhil Rathi on Wednesday, urging the watchdog to prioritise the review so the rules “do not unduly burden or prevent democratically elected individuals, public officials, or their respective families from access to essential banking services.”
