UK Chancellor Jeremy Hunt has claimed that he was denied a bank account by Monzo while serving as a backbencher last year, stating that he faced differential treatment as a ‘politically exposed person’ (PEP).
Hunt is one of several public figures who have raised concerns about this issue, following Nigel Farage’s assertions that he was excluded from the banking system due to an overly strict interpretation of anti-money laundering regulations. “If the price of going into public life is that you find it really hard to set up a bank account, then we need to make sure that we remove barriers where we can,” Hunt told the Financial Times, referencing his experience with Monzo.
Banks are obliged to apply additional checks to PEPs due to a heightened risk of money laundering. Farage’s claims have been rebutted by his bank, Coutts, which stated that his account was closed because his balance fell below the minimum required at the prestigious institution. Monzo has not commented on Hunt’s situation.
In response to these concerns, the government has proposed an amendment to the Financial Services and Markets Bill, which would require the Financial Conduct Authority (FCA) to assess how banks handle accounts for PEPs. A spokesperson for the FCA noted, “Over the past 18 months, we have reminded banks of the need to be proportionate. Some have improved their processes as a result, and they all now have a direct point of contact for people to report issues.”