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The UK’s top financial regulator has vowed to take “prompt action” against any banks found to be unfairly refusing service to politicians and their families, as it outlined the terms of a broad review sparked by controversy around Nigel Farage’s banking relationships.
The Financial Conduct Authority said on Tuesday its previously announced review will examine how banks define so-called “politically exposed persons”, how they carry out risk assessments on those individuals, how they monitor evolving risks and the process for deciding to close accounts. It will also look at how banks communicate with politically exposed persons.
“The FCA will take prompt action if any significant deficiencies are identified,” the regulator said. Any action could be taken as and when issues are discovered by the FCA, rather than waiting for the June 2024 deadline to complete the review, a person familiar with the situation told the Financial Times.