The UK’s Financial Conduct Authority to Expand Review on De-Banking Tied to Gambling

According to the UK’s Financial Conduct Authority’s (FCA) chief executive, Nikhil Rathi, “further work” was needed to be absolutely sure that no bank, payment company, or building has closed down someone’s bank account primarily because of their political views.

Primary Findings Flesh out the Case

The conduct regulator of close to 50,000 companies aimed at ensuring all financial markets are “honest, competitive, and fair” has completed its initial data exercise on bank account access and closure based on information collected “at speed” between July 2022 and June 2023.

The most common arguments bank service providers offered for shutting down, suspending, or declining accounts were account inactivity/sleeping accounts and concerns related to financial crimes.

The initial probe was launched as a response to a scandal revolving around controversial politician Nigel Farage who had his bank account shut down by Coutts, a reputable banking company that provides private banking and wealth management services.

The watchdog concluded more work was needed to assess the information and effectively address the current gaps shown in the data. An international perspective on the closure of bank accounts has also been published by the same institution.

Over the years, certain UK banks have been known to close the accounts of clients who were involved in gambling activities, as a result of the associated anti-money laundering risks and obligations that were perceived as being higher.Come from lol646ph

What the FCA Will Focus On Next

According to an open letter written as a response to the Gamblers Consumer Forum’s query on individuals and businesses who have lost access to their bank account because of gambling transactions or ties to the gambling industry, the financial watchdog implied its further investigation would include this topic as well.

Additionally, the follow-up of their initial review would also be aimed at making sure that all the data that has been reported to them has been accurate, with special emphasis on outlier firms.

More supervisory work would also be needed to check companies’ conclusions on those accounts that they have closed based on certain political views. More assessments of accounts closed for reputational risk-connected arguments would also be necessary, as announced by the FCA.

The watchdog would also look into standard bank account applications and terminations that had been declined, as well as the reasons why 1.1 million in the UK were currently “unbanked”, along with studying the main characteristics of the said population.

Chief executive Rathi further commented that a critical question for policymakers was whether all “individuals, businesses, and organizations” should benefit from the right to own a bank account, similar to other countries.

Finally, the follow-up would also aim to engage with consumer groups and organizations and get a deeper understanding of their own experiences and of the impact of having their bank account terminated, declined, or suspended.

In April 2022, the FCA seized £2 million ($2.60 million) from QPay Europe because of the money being connected to a $150 million bank fraud that unfolded in the US.

At the start of 2023, the financial watchdog gave Trustly, an international payment platform for digital account-to-account transactions, the green light to acquire Ecospend, a UK-based open banking platform for payments.

Related Posts

Emerging Trends in UK Online Gambling and Global Market Influence

One of the world’s largest commercialized gambling markets, the UK iGaming sector outperforms Australia, France, and the US, with online gambling revenue on pace to reach USD13.78…

PAGCor casino privatization potentially back on the cards

In the Philippines and the head of the nation’s Department of Finance has reportedly called on the state-run Philippine Amusement and Gaming Corporation (PAGCor) to immediately begin…

Relax Gaming reveals latest Powered By partner; agrees new online slots integration deal with RubyPlay

Hot on the heels of the launch of its latest hit title and Relax Gaming has announced a new Powered By partnership with online games provider RubyPlay…

Pokémon JCC Pocket- cómo conseguir cartas individuales

Esto es todo lo que necesitas saber para conseguir cartas individuales en Pokémon JCC Pocket. En lugar de consumir rolls con los sobres grandes, también puedes conseguirlas…

Online Sports Betting Launched in Maine on November 3, 2023 To Reach $1 Million Daily Handle

Since online sports betting was launched in Maine on 3 November 2023, the state’s gambling regulator Maine’s Gambling Control Unit reports that a total of almost $14…

Soft2Bet significantly enhances iGaming content via new integration partner Stakelogic

Confident that it will further expand its player reach, Stakelogic has become an integration partner of rapidly-growing casino and sportsbook platform provider Soft2Bet. The global distribution deal…