UK banks shut more than a thousand accounts daily

London:  In a bid to combat money laundering and ensure financial accountability, British banks are closing more than a thousand accounts of their customers on a daily basis.

Statistics have revealed that between 2016 and 2017, banks closed 45,000 accounts, and since then, this number has been increasing every year.

During 2021-2022, this figure reached a staggering 343,000 closed accounts.

Often, individuals or institutions whose bank accounts are closed are left with minimal or no explanation from the banks regarding the reasons behind such actions, even though banks sometimes attribute it to concerns related to money laundering and fraudulent activities.

Approximately 90,000 people have been listed as "politically exposed persons," resulting in the banks rejecting the accounts of certain politicians or their family members.

Some well-known figures, including MPs and others, have been affected due to concerns about misusing their positions for personal gains.

Leading the Cointy Brexit campaign, Gina Miller has demanded the Financial Conduct Authority (FCA) and the government ensure that new parties and MPs can access banking services.

This demand arose when Digital Bank Monzo recently informed her that her party's account would be closed in September.

Moreover, many non-UK-born individuals who mostly conduct transactions internationally have also faced account closures.

So far, the banks have been elusive about the regulations they follow while closing accounts and tend to deny any reason for doing so.

In light of these developments, the FCA stated that the increasing scrutiny leading to the closure of accounts can be clarified by the banks. The UK has approximately 75 million bank accounts.

The government has now announced plans to amend the laws regarding bank account closures.