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Bank Services: Vetting

Answer

Banking services fulfil a vital role in the lives of millions of people and businesses across the UK, and the government is committed to ensuring high standards of consumer protection and financial inclusion across the financial services sector.

Banks are already prohibited from discriminating against UK consumers based on their lawful political opinions when accessing a payment account. The government has on 28 April published new legislation that strengthens customer protection standards in cases where their account is terminated by their provider. These new rules will require banks to give customers 90 days’ notice before closing accounts and provide a clear explanation. These changes will prevent banks closing accounts without a clear reason, while giving people and businesses the time and information needed to challenge decisions. Further details can be found here: https://www.gov.uk/government/news/millions-of-people-and-businesses-protected-against-debanking

FCA guidance is clear that financial institutions should not be applying a blanket approach to the treatment of Politically Exposed Persons (PEPs). The government has been working closely with the FCA to follow up on the findings of its review into the treatment of PEPs by financial institutions, and to ensure firms improve their practices where necessary, including to treat domestic PEPs and their relatives and close associates proportionately in line with the level of risk.

Secondary information

Type

Written question

Reference

45654

Session

2024-26

Related items

Bank Services: Vetting
Thursday, 15 May 2025
Written questions
House of Commons

Subjects

Bank services Politics and government Vetting Politically exposed persons

Link

View this Written question on www.parliament.uk