The FCA has warned it will take “prompt action” if a fresh review finds that UK banks are treating politicians and their families unfairly, by denying accounts or running excessive checks on their transactions.
The regulator made the comments as it formally launched its review into rules surrounding the treatment of politically-exposed persons (PEPs).
While the review was originally set in motion by the passing of the Financial Services and Markets Bill in June, attention ballooned in July when former Ukip leader Nigel Farage had a spat with NatWest over a decision to close his accounts at its exclusive private bank, Coutts.
Banks are currently required to closely monitor the accounts and transactions of PEPs, who include MPs, peers, leaders of UK political parties and senior ranking military officers, as well as their family members and close associates.
But the FCA’s newly-launched review will consider how firms are applying the definition of PEPs, whether they are conducting proportionate risk assessments and applying due diligence and monitoring accounts “in line with…
