Throughout 2023 and 2024, and following several high-profile “de-banking” cases, we published various blogs charting the developments in this area, which were summarised in our blog “2024: a year in de-banking”.
The original “de-banked”
Back in August 2023, when we started following this topic, we wrote about the conclusion of the “headline-grabbing, high stakes banking saga that revolved around UK politician Nigel Farage”.
We noted how in this case the bank initially refused to share the reason behind closing the relationship but eventually provided very minimal information. We speculated whether this could lead to the end of the de-banking problem and concluded that it would probably not be the case.
The original saga continues
Recent news would suggest that the original saga is far from being over.
It is reported that Mr Farage is now exploring the route of private criminal proceedings against Natwest Group over the debanking situation. It will certainly be interesting to watch this scenario unfold.
NAVIGATING FINANCIAL INSTITUTION RELATED CHALLENGES
Bank account closures or “de-banking”
We have previously written that account closures are not limited to extravagant political figures in the UK; in fact, they can affect many thousands of law-abiding individual and business customers every year. These cases have exposed the difficult balance that 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 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
Furthermore, we continue to assist individuals who feel that incorrect and/or inaccurate data about them has been stored in compliance databases, having an adverse effect on their relationship with financial institutions. As a result, they are facing issues, such as closure of their bank accounts and difficulties with opening a bank account.
We have also provided a basic overview of the main functions of compliance databases like World-Check and the steps to correct information in such databases.
Can a CIFAS marker restrict access to financial services?
We continue to advise individuals who have been adversely affected by a CIFAS marker and want to remove it.
In some scenarios, a CIFAS marker can be issued wrongly against an individual, having a hugely detrimental effect on their life due to its wide-ranging, complex and adverse consequences. We have examined what a CIFAS marker is and how it can be removed in one of our blogs. Additionally, we have explored further steps in the event that the bank and CIFAS refuse the complaint.
Updated: 21 February 2025
HOW GHERSON CAN ASSIST
Gherson’s regulatory, white-collar and investigations team are highly experienced in assisting with situations where a bank freezes or closes a customer’s account. This includes help 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 hold on this person and understand their decision making. Upon receiving the response, we analyse it and offer assistance 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 with the latest developments.
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