I have been de-banked: Charting the UK de-banking landscape in 2025

Throughout 2025 we have been chartering the changing de-banking landscape in the UK.

During this period, we have been approached by individuals who have had their personal and/or business bank account(s) closed in circumstances where they are adamant there has been no breach of any of the bank’s Terms and Conditions or applicable laws and regulations.

In some scenarios, the decision by the bank to close the bank account(s) was taken wrongly, and being in this unfair situation can have a hugely detrimental effect on the person and any business due to the wide-ranging, complex and adverse consequences for the individual affected.

I have been de-banked – am I entitled to a basic bank account in the UK?

In an April 2025 article, we explored the fundamental question of whether individuals in the UK are legally entitled to a bank account, specifically a Basic Bank Account (BBA), and talked about the legal and regulatory framework that governs access to these services. We will now also analyse how the phenomenon of de-banking may impose adverse effects on innocent civilian customers nationwide.

What are the new rules announced by the Labour Government aimed at preventing potential de-banking situations?

In a May 2025 article, we examined the new rules proposed by the Labour Government.

Broadly, we noted that the proposed new rules will extend the notice period a bank must give to close a customer’s account (i.e. de-bank a customer) from the current two months to 90 days.

Additionally, the new proposed rules will provide more transparency on the bank’s decision-making process by requiring the banks to, in the right circumstances, give more reasons for their decisions to de-bank a customer.

Ultimately, the changes remain similar to those we highlighted in our March 2025 article on this topic:

What are the proposed new laws aimed at preventing de-banking?

When will the new de-banking rules come into effect?

In June 2025, we confirmed that the new rules should come into effect from April 2026, subject to Parliamentary approval.

However, As we have previously explained, although the new rules will go further in addressing some of the iniquities in certain de-banking decisions, the whole approach to providing adequate access to a bank account and banking facilities needs to be radically reconsidered, making it akin to a fundamental right rather than something that can be offered (and taken away) at the whim of the banks.

Has the US-style wave of crypto “de-banking” reached the UK?

In July 2025 we discussed a January 2025 Forbes article entitled “No Country for Young Fintechs: the U.K.’s Debanking of Crypto Blockchain and Web 3”, and reported on the results of a survey which found that 50 percent of the UK’s fintech and crypto firms have received a rejection when trying to open a bank account.

This situation begs the question – has this indeed become a new reality, and if so, is there any light at the end of the tunnel?

As we have also noted and explored in detail, the combination of potential new UK regulations for cryptoassets and stricter rules aimed at preventing de-banking should reduce the incidents of unfair account closures.

The previous landscape for both de-banking and crypto regulation has been uncertain.

However, the combination of new rules should hopefully lead to more certainty and, as such, less incidents of wrong de-banking decisions.

What can I do to try and challenge a wrong decision to close my personal and/or bank account(s)

In the meantime, we are increasingly being approached by individuals who have been “de-banked” in circumstances where they are adamant that they have always acted in full compliance with the relevant bank account’s Terms and Conditions and all other legal and applicable rules and regulations.

We have previously written about how other issues individuals may face, including account closures, are not limited to political figures in the UK and may 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 strike 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 blogs titled

• “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”.
• “Am I entitled to a basic bank account in the UK?”
• “How to challenge crypto-related bank account closures”
• “De-banking and crypto – will the landscape be positively changed by the introduction of new rules for both?”

What can I do to try and challenge a wrongly-imposed CIFAS marker

We are also being increasingly approached by individuals who feel that a financial institution has wrongly imposed a CIFAS marker in their name.

If you have always acted in full compliance with the relevant bank account’s Terms and Conditions and all other applicable legal rules and regulations, then you should have a good basis to challenge the bank’s decision to implement any CIFAS markers.

A strong challenge will often involve demonstrating through evidence that you have not breached the bank’s Terms and Conditions or any rules and regulations, and that all transactions were at all times carried out in full compliance will all the applicable laws and regulations.

In a previous blog, we examined what a CIFAS marker is and how to try and get it removed, as well as what you can do if a CIFAS marker has been wrongly imposed.

We have also recently examined Challenging a crypto-related CIFAS Marker: what you can do.

NAVIGATING FINANCIAL INSTITUTION-RELATED CHALLENGES

Adverse information on compliance databases

We are also often approached 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 and are facing subsequent issues, such as bank account closures and difficulties in 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 you can correct information about yourself on such databases?

How Gherson Can Assist

Gherson’s regulatory, white-collar and investigations team are highly experienced in providing assistance on what you can do if your bank freezes or closes your account.  This includes assisting you in 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 on you and 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