FCA begins investigation into bank's 'politically exposed persons' procedures
FCA examining how banks manage account of public figures, particularly politicians.
The Financial Conduct Authority sent a letter on Monday (14 August), stating it was «reviewing how financial services firms have applied the politically exposed persons (Peps) regime and whether any changes are needed for UK Peps.»
It said it was «keen to hear directly from UK Peps on their experiences, including any problems they have encountered».
FCA to begin de-banking probe
The probe follows the launch of a widespread de-banking investigation from the FCA earlier this month, after the issues with former UKIP leader Nigel Farage having his account closed at Coutts, a private bank owned by NatWest, due to his political views.
The initial investigation was part of a government ordered review into the relationship between banking services and free speech, as Chancellor of the Exchequer Jeremy Hunt urged the regulator to protect people's rights without fear of losing their accounts at the time.
This new review will look into the regime around Peps and individuals subject to greater scrutiny, such as politicians, as they are regarded as a higher risk of corruption.
The FCA said the Peps regime «means that firms are required by law to undertake extra checks on political figures, their families and associates when using certain financial services», which it first published guidance for in 2017, but said that after recent feedback it was «considering whether this needs updating».
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