In recent years, the issue of “de-banking” has received growing public attention in the UK, particularly following high-profile cases like that of Nigel Farage.
However, for many individuals, the experience of being denied access to essential financial services is far from headline news – it is an everyday struggle.
Indeed, throughout 2023 and 2024, and following several high-profile “de-banking” cases, we published various blogs chartering the developments in this area, which culminated in our blog 2024: a year in de-banking.
What are my options after being de-banked?
In previous blogs, we have discussed the options available upon being debanked.
In this blog, we explore the more fundamental question of whether individuals in the UK are legally entitled to a bank account, specifically a Basic Bank Account (BBA), and talk about the legal and regulatory framework that governs access to these services. We will also analyse how the phenomenon of de-risking may impose adverse effects on innocent civilian customers nationwide.
Understanding the context: de-banking and de-risking
“De-banking” refers to the practice, whereby financial institutions terminate or deny banking relationships to specific individuals, businesses or sectors. This often falls under a broader strategy known as “de-risking,” where banks aim to limit exposure to entities perceived as carrying high financial, regulatory or reputational risks. While de-risking may help banks comply with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) obligations, it has also resulted in situations where some individuals – particularly those who are economically or politically marginalised – were excluded from basic financial services.
This financial exclusion has led to significant concern, particularly where de-risking is not based on a legitimate risk assessment but rather on broad assumptions or commercial priorities. The Financial Conduct Authority (FCA) has warned that such practices can disproportionately affect economically vulnerable populations. Against this backdrop, it is important to understand your legal entitlements to a basic bank account in the UK.
What is a Basic Bank Account (BBA)?
A Basic Bank Account (BBA) provides essential banking functions without the extra features or credit facilities that come with standard accounts. While these accounts are relatively simple in nature, they serve a vital role in promoting financial inclusion.
- A BBA holder can do the following:
- Use a debit card for transactions and contactless payments (including Apple Pay, Google Pay, Samsung Pay).
- Withdraw cash from ATMs (free of charge unless the ATM provider applies a fee).
- Receive income such as wages, benefits or pensions.
- Set up direct debits and standing orders to manage regular payments.
- Access services through online, mobile, phone and in-branch banking.
- However, please note that BBAs do not offer:
- Chequebooks
- Overdrafts
- Cashback or interest rewards
- Credit features, such as loans or credit cards.
When do you need a BBA?
A BBA is particularly suitable for individuals who may experience difficulties with accessing standard current accounts. This includes people who:
- Have a poor or limited credit history
- Have been declared bankrupt, or
- Use debt management through tools such as an Individual Voluntary Arrangement (IVA), Debt Management Plan (DMP) or Debt Relief Order (DRO).
Such individuals may be deemed “economically vulnerable” and are often at a higher risk of being denied access to regular financial products. In these cases, a BBA serves as a critical financial lifeline.
Are you entitled to a BBA in the UK?
Currently, UK law does not provide a blanket legal right to open a bank account. This means financial institutions are not legally obligated to offer banking services to everyone. Banks retain discretion over whether to provide a service, often weighing commercial interests, reputational risk and compliance concerns.
This discretion was evident in the high-profile case involving Nigel Farage, who was reportedly refused a bank account by several institutions citing risk concerns—even though he ultimately received public apologies. Most individuals facing similar challenges, however, do not have the public platform to advocate for redress.
Is it still possible to get a BBA in the UK?
Despite the absence of a universal right, certain statutory protections exist to ensure that essential banking services remain accessible to those in need.
Under Article 16 of the EU Payment Accounts Directive (PAD), all consumers legally resident in the EU are entitled to open and use a basic payment account regardless of financial status. This includes vulnerable groups such as the unemployed, the homeless, asylum seekers and migrants.
Following the UK’s implementation of the PAD through the Payment Accounts Regulations 2015 (PARs), and despite Brexit, these rules continue to apply. As part of these regulations, the UK government designated nine major banks (known as the CMA9) to offer BBAs to eligible individuals.
What are the CMA9 banks?
The CMA9 banks are the UK’s largest providers of personal and business current accounts, and they are obligated to offer BBAs under the PARs. These banks are:
- Allied Irish Bank (AIB Group UK)
- Bank of Ireland
- Barclays
- Danske Bank (Northern Bank Limited)
- HSBC
- Lloyds Banking Group
- Nationwide Building Society
- NatWest Group
- Santander
If you meet the eligibility criteria and are unable to access a standard current account, one of these institutions must provide you with a BBA.
What are the conditions for accessing a BBA?
The CMA9 banks are required to provide a basic account to UK residents who:
- Are not eligible for a standard account
- Do not already hold a UK payment account
- Meet identity verification and residency requirements.
Importantly, banks must not discriminate against applicants on the basis of protected characteristics such as race, religion, gender, disability or political opinions, as set out in the Equality Act 2010 and other applicable regulations.
However, banks may still refuse to open a BBA based on commercial or risk considerations, such as:
- Inability to verify your identity or residency
- History of financial crime or fraud
- Concerns related to AML/CTF compliance.
This means that while protections exist, access is not guaranteed in every case.
Are there situations where a BBA may be denied or closed?
Yes. A BBA may be denied or closed if:
- The applicant provides false or misleading information.
- The bank is unable to satisfy regulatory obligations, including AML checks.
- The customer is later found to have engaged in fraudulent or criminal activity.
- The customer opens another account or becomes eligible for a standard account, and the bank chooses to transition them.
- Furthermore, even where an account is opened, ongoing reviews may lead to closure if risk factors change.
Conclusion
While the right to a bank account is not absolute in the UK, the regulatory landscape provides important safeguards – especially for those most in need of financial inclusion. The BBA plays a vital role in offering secure, accessible and essential banking services to individuals who may otherwise be excluded.
NAVIGATING FINANCIAL INSTITUTION RELATED CHALLENGES
Bank Account closures or “de-banking”
We have previously written about how other issues individuals may face, including account closures, are not limited to political figures in the UK, and affect many thousands of lawful individual and business customers every year. These cases have exposed the difficult balance many financial institutions and their individual and business customers must navigate to gain and maintain access to basic banking services.
To assist those whose accounts have been closed, Gherson’s financial crime, investigations and regulatory team have previously written the following blogs:
- Why has my bank account been closed
- Why has my business bank account been closed?
- 140,000 SMEs “de-banked” last year – why could I have been de-banked?
- What are the proposed new laws aimed at preventing de-banking?
- Why the proposed new laws to try and prevent de-banking to not go far enough
Adverse information on compliance databases
We receive an increasing number of enquiries from by individuals who feel that incorrect and/or inaccurate data about them stored in compliance databases is having an adverse effect on their relationship with financial institutions, resulting in bank accounts closures or difficulties with opening a bank account.
We have also written a series of blogs on a basic overview of the main functions of compliance databases like World-Check, and how to correct your information on such databases.
Could a CIFAS marker be affecting my ability to obtain financial services?
We are increasingly approached by individuals who have been adversely affected by a CIFAS marker and want advice on how to remove it.
In some scenarios, the CIFAS marker against the individual will have been added wrongly and can have a hugely detrimental effect on the affected individual due to the wide-ranging, complex and adverse consequences.
In our previous blogs we have examined what a CIFAS marker is, and how to try and get it removed along with what to do if a bank and CIFAS have refused your complaint.
Updated: 22 April 2025
HOW GHERSON CAN ASSIST
Gherson’s regulatory, white-collar and investigations team are highly experienced in providing assistance in situations where a bank has frozen or closed an account. This includes assistance with submitting a request under data protection legislation, otherwise known as a Data Subject Access Request, to ascertain what information banks and other financial institutions may be holding in respect of the affected person and to understand their decision making, and then analysing the response and assisting with any appropriate challenge.
If you have any questions arising from this blog, please do not hesitate to contact us for advice; send us an email at enquiries@gherson.co.uk or, alternatively, follow us on X, Facebook, Instagram, or LinkedIn to stay-up-to-date.
The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.
©Gherson 2025