Karl Waktare on the debanking issue

DON'T BANK ON THE SUPPORT YOU NEED

The issue of debanking has exercised many of our columnists this month, not least our newest, the industry insider Karl Waktare

I’VE got a friend who used to work in the city with his fingers in many pies. One of the ventures he dabbles in is short term loans at often doubledigit rates. Most often this lending is to people involved in building projects where they are nearing completion. Anyone who has ever had any form of building work done can appreciate it always takes longer than planned and often goes over budget. I once asked him the obvious question, why don’t they borrow at a more reasonable rate from their bank. His answer was not complicated, he simply said ‘because banks are shit’. By the time they have approved the loan, demanded unreasonable security etc the whole project would be in chaos with builders either suing or moving elsewhere. It’s worth paying a little more for speed.

Why us?

Us shooters are a minority and mostly hidden away in barns, ditches and marshes. According to an article that appeared in the Guardian in July 2023, over 343,000 UK bank accounts were closed in 2021-22, up from about 45,000 in 2016-17. The article gives examples of people having their accounts closed because they dealt in crypto currency, had gambling accounts or sent money abroad from time to time.

I have recently tried to open a business account for my company True Target Ltd—nothing to tell really, just a vehicle for future self-employment. My first port of call was HSBC with whom I have banked for over 40 years. HSBC are advertising their small business credentials all over the place currently. Anyway, they turned me down. I can’t recall if they gave a reason but I couldn’t be bothered to pursue it as you cannot get hold of a person with any authority. I can only assume they found something in my profile that they didn’t like, it might even have been the name which sounded like something shooting related. Eitherway something got flagged and I got the Dear Karl letter. I was pretty &%$£ed off, but did I close my personal account in protest as I initially planned? No, I am familiar with and like their banking app, also I can’t be bothered with the hassle of changing all my Direct Debits.

His answer was not complicated, he simply said ‘because banks are shit

We need to understand that banks are not evil, they are bureaucratic, risk averse and very slow. We mustn’t take it personally. Banks seem to be able to justify debanking customers on the grounds that account holders pose a financial, legal, regulatory or reputational risk. It’s obviously the latter that flags up for shooters, as it did for Nigel Farage. However, we mustn’t think that the good ‘ol shooters’ friend Nigel is able to do much to help us. His situation was slightly different, and Coutts got into trouble because they closed Nige’s account based on his political beliefs. Following this the Chancellor asked the FCA (Financial Conduct Authority) to look into debanking in relation to freedom of speech. Us shooters are not having our accounts shut because we believe it’s OK to engage in country pursuits, it is because banks believe that having us as customers is bad for their reputation. If it’s any comfort the only other groups I could find in the same boat as us were sex workers, money launderers, fraudsters and terrorists. I hereby call that we all join forces and march on Westminster. Maybe not, but the aftermarch trip to the pub could be lively!

I spoke with Connor O’Gorman at BASC who is doing a great job on this subject. He is aiming to gather as many cases as he can to put forward to the FCA. Please contact Conor.Ogorman@ basc.org.uk if you have had a de-banking issue. Well done Connor and BASC.

Contact karl@truetarget.co.uk

Why don’t you ask China!

It may surprise people, but I actually read quite a few books, some of them containing long words. There is a book by an American investigative journalist called Eat the Buddha. It’s about how China has taken control of Tibbet and assimilated what was basically another country. One way in which they suppress protest is through banking. In this modern world if you don’t have a bank account you are pretty stuffed. In China if you work hard, don’t protest, and become a good party member you improve your credit score. This allows you to borrow money to buy a house, a car and generally provide for your family. This is an effective means of control, pretty scary also.

Brothers in Arms

There is a powerful international network out there that spans continents and knows everything about the firearms trade. OK, I am bullshitting again, it’s a WhatsApp group that me and some mates from the Beretta Group have. Harmless really with the occasional bit of shared humour, often directed at Prince Harry. Anyway, I enquired among my brothers about the international situation. We are not alone, Australia reported the same situation as us regarding banking, transport and insurance. The US and Canada are slightly different given the second amendment, mass killings, assault weapons etc. However, they are very much in the same boat. Apparently, there is even a Bank over there that is specially set up to support the gun industry.