Following the recent controversy about the closure of a bank account of former UKIP leader Nigel Farage (he is said to have banked at Coutts, although he did not identify that lender by name in his own story), more information about what might have caused this decision is coming out. Dominic Lawson, son of the late UK Chancellor of the Exchequer, Nigel Lawson (the TV cooking writer and literary editor Nigella Lawson is Dominic’s sister), has been through a similar process in the case of his daughter, who has Down’s Syndrome:
In 2016 we decided to open a bank account for her. She has Down’s Syndrome; this was not something she could do herself. But when my wife Rosa went to the Barclays in our nearest town (where Rosa had had an account for many years), she was told it would not be possible for Domenica to have an account. No reason was given. Fortunately Rosa knew the manager there — the position now no longer exists, and the branch itself is about to close — and he said that he would look into the matter.
He came back to Rosa: ‘I’m really sorry, but it’s out of our hands. It’s because of money-laundering risks. ‘I know this sounds ridiculous, but it’s because of Domenica’s grandfather. He is a politically exposed person.’ This was a reference to Nigel Lawson, my late father, the former chancellor, who was by then a member of the House of Lords. And as the Lords is a legislative assembly, that counted under the regulations. As, absurdly, did his granddaughter, who was of course oblivious to the bank’s implication that she might be a link to money laundering, or the funding of an international drugs cartel.
A friend of mine, known to several who write for and manage this blog, is a member of the House of Lords. I know several, in fact. Maybe they should phone their banks.
Eventually, we did manage to open an account for Domenica there, but it involved the most exhaustive form-filling, with much toing and froing between us and Barclays’ compliance people in London.
It seems that this insanity has struck sufficiently close to home that the UK government, usually a model of inanity and uselessness, is getting involved. After all, the Tories know they might be out of office soon, and might not want to go through what Mr Farage, the Lawsons, and several others have been through.
As I said in a comment on Patrick Crozier’s article about the “de-banking” of Mr Farage last week, this also demonstrates the danger of what are called central bank digital currencies. The potential for governments, such as those admiring the “social credit” regime of Communist China, to use CBDCs to enforce “correct” behaviours and suppress “bad” ones, such as blocking payments for alcohol, or closing contributions to unpopular causes, are dangerously large. Consider what the Canadian government of Justin Trudeau did to those financially supporting the anti-vaccine truckers, for example.
This other Samizdata article referred to HSBC. The Dominic Lawson article also refers to that bank in an unflattering way.
As an aside, what the current situation demonstrates is the lack of real choice in the banking system as it now operates. Linked to central banks for their funding, with CBs as “lenders of last resort”, and anti-money laundering laws imposed by force, bankers are no longer able to have confidential conversations with a client. A banker is obliged by law in most major industrialised nations to report on transactions they deem suspicious, for example, for whatever reason, and woe betide the banker that doesn’t. There are requirements such as Suspicious Transaction & Order Reports in the UK. The US Securities and Exchange Commission operates a similar process. In Switzerland, once renowned for its bank secrecy, non-domestic Swiss clients are no longer under its protection.
Politicians and their cheerleaders might applaud the “ghosting” or “de-banking” of people they dislike, but they ought to be aware that these powers cut both ways. Imagine if, for example, protest groups were to be designated as “terrorist” or whatever. Imagine if Just Stop Oil, Extinction Rebellion, or some other group, gets this treatment.