Awani Review

Complete News World

In the United Kingdom, small businesses and associations fight to keep their bank accounts

In the United Kingdom, small businesses and associations fight to keep their bank accounts

The affair started in June 2023. Former British far-right leader Nigel Farage, now a humble TV talk show host, publicly announced that his bank, Coates, was closing his account without explanation. “Political Persecution”, he condemned. Mr Farage felt excluded by his comments from the firm, which was reserved for wealthy clients.

After weeks of agitation, this master of media propaganda obtained internal documents from Coates that proved him right. The internal committee responsible for assessing risks to the reputation of the establishment, in fact, Mr. Farage considered. “Great racism and playing into the hands of racists”. He also wondered about his possible connections to Russia. Bank's Decision: Man “On the contrary [leur] Status as an inclusive organization ».

The former politician won his battle. He switched banks, but he secured the resignation of Alison Rose, a director of Coutts' own bank, NatWest. He is now seeking compensation.

After what could have been a simple epiphenomenon, tongues went loose. Small businesses and charities are beginning to complain that their bank accounts are frequently being closed without notice. A parliamentary committee has started an inquiry. In February, it published the first figures: each year, more than 140,000 small and medium-sized enterprise (SME) accounts were closed at the initiative of their bank, or 2.7% of the total. On April 22, TheOmbudsman The British financier reported a 44% increase in complaints about untimely account closures between April 2023 and March 2024 compared to the previous year.

Critical checks

Common to the thousands of small businesses affected by Mr Farage are tougher anti-money laundering rules. Banks must now monitor “Politically Exposed Personalities”, corruption is considered to be at high risk. They must demonstrate that they have implemented all procedures “Know their customer”, which requires significant validation. At the same time, regulation that imposes more capital and liquidity has made companies significantly less profitable than before.

See also  A multi-sensory experience is The Loom Melbourne Connection
Read the report | The article is reserved for our subscribers In Basildon, travel to the heart of the stagnant British economy

As a result, many organizations don't have the time, money or appetite to do the checks that very small businesses or charities need. Sometimes ludicrous cases such as the Society of Friends of Hornsey Clock Tower, an old medieval church in North London. This usually takes care of renting a room there, cataloging the graves in the cemetery, and organizing a garden maintenance day twice a month. In November 2023, Say it Financial Times, Barclays suddenly closed his account, without explanation. Nick Allaway, a former accountant and board member, had to pay suppliers out of his own pocket and refused donations.

In this article you should read 39.82%. The rest is reserved for subscribers.