FCA looks to update banking rules around ‘politically exposed persons’

ANNA WISE

BRITISH politicians are to be asked to reveal whether they have encountered problems or faced being “debanked”, as part of an inquiry by the UK’s financial watchdog.

The Financial Conduct Authority (FCA) said it is looking into the rules surrounding politically exposed persons (PEPs), which includes MPs.

The regime was thrust into the spotlight after former UKIP leader Nigel Farage revealed Coutts, which is owned by Natwest Group, had moved to shut down his bank account.

FCA guidance stipulates financial firms should treat accounts of PEPs with extra due diligence. But the watchdog is now looking into whether

PA banks apply the rules too rigorously. As part of its review, the FCA has sent a letter to British MPs.

An FCA spokesperson said: “We are reviewing how financial services firms have applied the politically exposed persons regime and whether any changes are needed for UK PEPs.

The FCA is expected to publish the full terms of its review in September.