Banks accused of closing accounts belonging to British Muslims

August 01, 2023

British Muslims are having their bank accounts closed "without adequate transparency and recourse," representatives have claimed.

The Muslim Council of Britain (MCB) said individuals and organisations in the community were being "disproportionately affected by this issue" - leaving the group with "deep concerns".

The body has written to senior politicians - including Prime Minister Rishi Sunak, Chancellor Jeremy Hunt, Labour leader Sir Keir Starmer and Liberal Democrat leader Sir Ed Davey - to call for a review into the decision-making process and the use of third parties in the banking sector.

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The problem of so-called "de-banking" came to the fore in recent weeks after former UKIP leader Nigel Farage had his account closed by Coutts, with the now-TV presenter claiming it was over his political views.

His campaign saw the chief executives of the bank and the wider NatWest group resign - and has led to an independent review of its processes.

On Monday, Mr Farage revealed Coutts had offered to reinstate his personal and business accounts, and that he was seeking compensation after the row played out publicly.

Questions over 'arbitrary withdrawal' of banking services

In her letter to the prime minister, the secretary general of the MCB, Zara Mohammed, wrote: "Your decisive intervention calling for change at the NatWest Group, following the recent denial of banking services to Nigel Farage, is of note.

"For British Muslims and Muslim-led organisations, however, the arbitrary withdrawal of banking services by different UK banks has become par for the course over the past decade."

She added: "The practice has continued unhindered, with limited transparency into the relevant banking systems and decision-making processes, little to no recourse for those impacted and no action taken by successive governments to address any of the aforementioned."

Ms Mohammed said high-profile Muslim-led charities and prominent Muslim individuals had been impacted, but had not been able to speak out due to "fear of reputational damage", as well as lacking the "considerable resource and platform required to bring their case to the attention of banking authorities, the media and government of the day".

Calling for the review, she added: "We urge you to ensure that any review also examines why British Muslims and Muslim-led organisations appear to be systematically singled out, and disproportionately impacted, by this practice.

"It is our conviction that any review must secure and uphold universal banking rights - rights that extend
to one and all, including those that may not have easy access to the public square."

A spokesperson from the Treasury said: "Free speech within the law and the legitimate expression of differing views is an important British liberty.

"The government has been clear throughout that, as a matter of public policy, it is wrong to remove someone's bank account because of their political views or something that they said."

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