MPs call for NatWest's licence to be reviewed over Nigel Farage row

MPs call for NatWest’s banking licence to be reviewed after Nigel Farage had his Coutts account shut because his views were ‘at odds’ with its ‘inclusivity’ policies – as Rishi Sunak vows crackdown on banks that ‘cancel customers’ free speech’

A senior Tory MP today demanded a review of Coutts’ owner NatWest’s banking licence amid their explosive row with Nigel Farage.

A bombshell dossier, handed to MailOnline, has laid bare the reasons for Mr Farage, the ex-Ukip leader, being ditched as a Coutts customer.

A 40-page file showed Coutts, which has been part of the NatWest group since 1969, had deemed the politician-turned-broadcaster’s views to be ‘at odds’ with its position as an ‘inclusive organisation’.

The bank’s actions have been branded ‘sinister’ and a ‘disgrace’.

It is also facing claims it previously ‘lied’ to the BBC that Mr Farage was no longer wealthy enough for an account.

Rishi Sunak this afternoon intervened in the bitter dispute as he pledged a crackdown on banks cancelling customers’ accounts due to their political views.

The Prime Minister lashed out at action being taken against account holders who are ‘exercising their right to lawful free speech’.

David Davis, the former Brexit secretary, told the House of Commons that Nigel Farage had been victim of ‘thinly-veiled political discrimination’

Rishi Sunak intervened in the bitter dispute as he pledged a crackdown on banks cancelling customers’ accounts due to their political views

A bombshell dossier, handed to MailOnline, has laid bare the reasons for Mr Farage, the ex-Ukip leader, being ditched as a Coutts customer

Mr Sunak faced a quizzing from Tory MPs during Prime Minister’s Questions over Mr Farage’s treatment by Coutts.

David Davis, the former Brexit secretary, told the House of Commons that Mr Farage had been victim of ‘thinly-veiled political discrimination’ and a ‘vindictive, irresponsible and undemocratic action’.

He told MPs that Mr Farage’s bank account was closed ‘not because he was a PEP (Politically Exposed Person), not because of commercial reasons, but because his views did not align with the values of Coutts bank’.

The senior Conservative also noted how NatWest disclosed ‘confidential details about Farage’s account to the BBC’ and ‘lied about the commercial viability of his account’.

Mr Davis claimed these actions ‘ought to jeopardise its banking licence and should certainly worry NatWest’s 19 million other customers’.

He asked Mr Sunak to order every bank with a British banking licence to inform the Treasury of all the accounts they’ve shut down for ‘non-commercial reasons’ over the past decade.

In response, the PM replied: ‘We do intend to crack down on this practice by toughening the rules around account closures.’

Sir Jacob Rees-Mogg, the former business secretary, also told MPs of his ‘unease’ that Coutts had closed Mr Farage’s account.

He urged Mr Sunak to use the Government’s shareholding in the bank to ‘ensure that there is an inquiry into these circumstances’.

The PM replied: ‘It wouldn’t be right if financial services were being denied to anyone exercising their right to lawful free speech.

‘Our new Financial Services and Markets Act puts in place new measures to ensure that politically exposed persons are being treated in an appropriate and proportionate manner.

‘Having consulted on the payment services regulations, we are in the process of cracking down on this practice by tightening the rules around account closures.

‘But, in the meantime, any individual can complain to the Financial Ombudsman Service, which has the power to direct a bank to reopen their account.’

The 40-page file shows how Coutts cited Mr Farage’s retweet of a Ricky Gervais joke and his friendship with tennis player Novak Djokovic to raise concerns he was ‘xenophobic and racist’.

The extraordinary documents, obtained by Mr Farage and handed to MailOnline, revealed Coutts decided to ‘exit’ him after making reference to his friendship with former Wimbledon champion.

Djokovic, who lost in the men’s singles final in SW19 on Sunday, made headlines over his decision not to have the Covid-19 vaccine during the pandemic.

The dossier also shows the bank’s discussions considered 13 tweets, including a retweet by Mr Farage of a video of a Gervais sketch posted by Laurence Fox satirising the transgender movement.

In the scene Gervais made a joke about ‘old-fashioned women – the ones with wombs’.

Mr Farage had retweeted the clip in May last year with the phrase ‘this is brilliant’ – but the document described it as a ‘transphobic comedy sketch’.

The officials noted that closing his accounts could not be justified on the basis of his wealth as his ‘economic contribution’ was ‘sufficient to retain on a commercial basis’. 

But the minutes state: ‘The Committee did not think continuing to bank NF was compatible with Coutts given his publicly-stated views that were at odds with our position as an inclusive organisation.’

Conservative ministers lined up behind Mr Farage against the bank, with Home Secretary Suella Braverman branding the situation ‘sinister’.

Energy Secretary Grant Shapps – who has clashed bitterly with Mr Farage before – said it was a ‘disgrace’. Labour MPs have also broken cover to voice disquiet.

Other swipes in the bank’s hatchet job on Mr Farage included:

• His calls for the UK to leave the European Convention on Human Rights were listed as an example of ‘adverse press’;
• The dossier also raises concerns about Mr Farage’s backing for Donald Trump, saying he ‘continues to support Trump despite the many new legal issues he faces’. But it warns that using this as a basis for ending the banking relationship would be seen as ‘taking sides on this debate’;
• The assessment says Mr Farage has been ‘professional’ in his relations with the bank, but adds of his public views: ‘These remarks are distasteful & appear increasingly out of touch with wider society.’
• At one point the dossier records that Mr Farage is ‘at best’ seen as ‘xenophobic and pandering to racists, and at worst, he is seen as xenophobic and racist’. ‘He is considered by many to be a disingenuous grifter,’ it adds. 

The Prime Minister today lashed out at action being taken against account holders who are ‘exercising their right to lawful free speech’

The 36-page file shows that the bank cited his retweet of a Ricky Gervais joke and his friendship with Novak Djokovic to raise concerns he was ‘xenophobic and racist’

The dossier says that Mr Farage’s EC – his ‘economic contribution’ is now ‘sufficient to retain on a commercial basis’

The dossier goes into great detail about Mr Farage’s previous public statements and controversies

Mr Farage said he had ‘thought twice’ about releasing the full Coutts dossier, saying it was ‘full of bile and prejudice’

The PM’s press secretary today said it would be ‘incredibly concerning’ if an individual’s bank account was closed because of their political views.

‘If the reports that we have seen today are true about the reasons for Nigel Farage and his bank account being closed down, that is obviously incredibly concerning and wrong,’ she said.

‘No-one should be barred from bank services for their political views.’

The 40-page dossier also referred to accusations made by Labour MP Chris Bryant under parliamentary privilege that Mr Farage was paid more than £500,000 by the Russian state – a claim he vehemently denies.

Mr Farage said: ‘This document is astonishing, it’s abusive and it makes a whole series of wildly false statements about Russia while acknowledging I have not been convicted of anything.’

He disclosed last month that Coutts had informed him of its decision to close down his account, branding the move ‘political persecution’. Other customers who claimed to have been abandoned by lenders due to their political views also came forward.

They included a priest who said his account was shut because he complained about his building society’s messages during Pride month.

The BBC went on to report, citing ‘people familiar with Coutts’s move’, that it was a ‘commercial’ decision to shut Mr Farage’s accounts as they fell below the financial threshold required by the bank.

The Coutts documents, which Mr Farage obtained from the bank through a ‘subject access request’, details discussions by a ‘Wealth Reputational Risk Committee’ on November 17 last year.

They read: ‘The committee did not think continuing to bank NF [Nigel Farage] was compatible with Coutts given his publicly-stated views that were at odds with our position as an inclusive organisation.

‘This was not a political decision but one centred around inclusivity and purpose.’

The dossier noted that there was ‘no evidence of regulator or legal censure’ of Mr Farage, that he was ‘professional, polite and respectful’ to staff and that he had recently been downgraded from a ‘higher risk politically exposed person [PEP]’ to lower risk, and was on the way to being classed as no risk at all. 

A Coutts spokesman said last night: ‘Our ability to respond is restricted by our obligations of client confidentiality.

‘Decisions to close accounts are not taken lightly and take into account a number of factors including commercial viability, reputational considerations, and legal and regulatory requirements.

‘As the client has previously confirmed, alternative banking arrangements have been offered within the wider group.’

Tory ministers lined up behind Mr Farage in the row with the bank, with Suella Braverman branding the situation ‘sinister’

The dossier includes a lengthy piece of research apparently conducted for the bank on Mr Farage’s previous political positions and controversies.

‘Given NF’s high profile and the substantial amount of adverse press connected to him, there are significant reputational risks to the bank in being associated with him,’ it said. 

‘While it is accepted that no criminal convictions have resulted, commentary and behaviours that do not align to the bank’s purpose and values have been demonstrated.’

In one section the assessment warns that he is seen as ‘xenophobic and racist’ and a ‘disingenuous grifter’. 

‘The values NF actively and publicly promotes/champions, do not align with the bank’s,’ the report said. 

‘Particularly given the manner in which he states (and monetises) those views – deliberately using extreme, hatful[sp?] and emotive language (often with a dose of misinformation) – at best he is seen as xenophobic and pandering to racists, and at worst, he is seen as xenophobic and racist. 

‘He is considered by many to be a disingenuous grifter and is regularly (almost constantly) the subject of adverse media. 

‘Conversely, it’s acknowledged that NF’s commentary remains within the law regarding hate speech and arguably on the right side of ‘glorifying or promoting harmful behaviour’ (although we should be mindful of the role the ‘illegal immigrant / invasion’ rhetoric plays in contributing to discrimination and in some instances, violence, against migrants).’ 

The assessment also notes: ‘It is likely that NF would perceive a decision to exit him as ‘unfair’ and he would almost certainly use his public platform to communicate this dissatisfaction.’ 

Energy Security Secretary Grant Shapps said this morning that it would be ‘disgraceful’ if Coutts had dropped Mr Farage because his views ‘do not align’ with its values.

Mr Shapps told Sky News: ‘I think it is absolutely disgraceful.

‘I don’t have to agree with everything Nigel Farage says to recognise that free speech is a very important part of our domestic life.

‘What has happened with some of these banks through this regime, which is known as the PEP regime, or politically exposed people, is really actually scandalous.

‘People shouldn’t have their bank accounts closed because of their political or any other view. And banks shouldn’t be refusing to open accounts on that basis as well.

‘Yet there is a very long-running problem within this country where banks are misapplying the guidance and rules. And not just closing accounts, but refusing to open them in the first place, and that should not be the case.’

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