Nigel Farage’s bank accounts: What’s it all about, and what’s the Coutts threshold?

Nigel Farage says his account with high-net-worth bank Coutts has been closed.

The Brexit campaigner was told by the prestigious private bank – a favourite of the Royal Family – that it no longer wants him as a customer.

Mr Farage claimed in a video on Twitter this was due to him being a “politically exposed person” or PEP, and said closing his bank accounts was part of a plan to force him out of the UK.

The bank doesn’t want his custom because he does not have enough money in his accounts, according to a BBC report.

Here’s what you need to know about Mr Farage’s battle for a bank account, what a PEP is and what it means for banking.

What has Nigel Farage said about his bank accounts?

Mr Farage last week said a bank – now confirmed as Coutts – had decided to stop doing business with him.

He said a letter from the bank contained no explanation and he had then been told over the phone it was a “commercial decision”.

In the six-minute video posted on Twitter, he said losing his bank account was the equivalent of being a “non person” and that the decision may “fundamentally affect [his] future career and whether [he] can even go on staying living here in this country”.

“The establishment are trying to force me out of the UK by closing my bank accounts,” the caption read.

In a second Twitter video, he said he had been rejected from having bank accounts by nine different companies.

He said NatWest, the owner of Coutts, offered him an account after his announcement last week, but it was not suitable because it was a personal and not a business account.

Farage claimed banks did not want him as a customer due to him being a “politically exposed person”, or PEP.

What does being a PEP have to do with banking?

A PEP is someone who is in public office and is therefore more susceptible to corruption or bribery.

PEPs include MPs, ministers, members of the supreme court, and their family members.

Banks have to carry out extra checks on PEPs to prevent bribes or corruption being passed through their accounts.

They can refuse to take on PEPs as clients because of the extra work they create.

Is Nigel Farage a PEP?

Mr Farage claimed Coutts said they were not sure if he was still a PEP.

But after doing a subject access request with credit agencies, the ex-MEP said he was told he is a PEP for both personal and business accounts.

Is that why Nigel Farage had his bank account closed?

Not according to people familiar with Coutts.

A report in the BBC said sources close to the decision said it was a “commercial” move.

The prestigious private bank requires clients to have at least £1m in investments or borrowing – including a mortgage – or £3m in savings.

Mr Farage reportedly fell below their wealth threshold.

Asked by Sky News about the minimum limit, Mr Farage did not deny his funds did not reach the criteria, but said “no threshold has ever been mentioned to me”.

The bank, founded in the late 17th century, has links with the Royal Family dating back to George III.

Coutts has refused to comment, but it is understood the bank makes decisions about whether to end a relationship on commercial viability, reputational reasons or legal or regulatory requirements.

What about claims Nigel Farage received money from Russia?

Mr Farage said in his Twitter video that claims he had received money from Russia could have resulted in the account closure.

He said the “only explanation I can think of” for the decision was a claim made by Labour MP Chris Bryant in the House of Commons that Mr Farage had received nearly £550,000 from Kremlin-backed TV channel RT.

Mr Farage has categorically denied the claims by Mr Bryant – which were made under the protection of parliamentary privilege and which he has not repeated outside the Commons.

“The truth is I’ve never received any money from any sources with any link to Russia,” Mr Farage said.

Read more:
‘You can bank at Natwest or HSBC like the rest of us, Nigel!’
Farage: ‘The Tories have betrayed Brexit’

What has the government response been?

MP Andrew Griffith, Economic Secretary to the Treasury and City Minister tweeted: “Banks should not be closing people’s accounts solely due to their status as a politically exposed person.”

He said he had written to the Financial Conduct Authority asking them to prioritise their review on this – although it has still not been established whether Mr Farage’s status as a PEP has anything to do with his account closure.

The Treasury said it was already looking into whether banks were being too rigorous in how they handle PEPs, and making sure UK-based politicians were treated as less risky than those in other countries.

A Treasury spokesman said: “It would be a serious concern if financial services were being denied to those exercising the right to lawful free speech.

“We are already looking into this issue and have passed a law that requires the FCA to review how banks treat PEPs – so we can strike the right balance between the customer’s right to free speech and the bank’s right to manage commercial risk.”