Britain reviews checks on 'politically exposed' customers of banks

Britain's financial watchdog said on Tuesday it has launched a formal review into how banks conduct mandatory extra checks on "politically exposed" customers and their families for money laundering risks.

Britain's financial watchdog said on Tuesday it has launched a formal review into how banks conduct mandatory extra checks on "politically exposed" customers and their families for money laundering risks. The review of existing guidance on politically exposed persons, or PEPs, is part of a wider look at "debanking", which recently became a political issue after former Brexit Party leader Nigel Farage said his account at private bank Coutts, part of NatWest, had been closed due to his political views.

The Financial Conduct Authority said that, while it cannot change the law which requires PEP checks, its review would consider whether banks were being heavy-handed in applying the rules and how they decided to close accounts of PEPs, their family members or close associates. The review will report by the end of June 2024.