NatWest Group has reached a confidential settlement with Reform UK party leader Nigel Farage, bringing an end to a two-year dispute over the closure of his bank accounts that ultimately cost the bank's former chief executive officer her position.

The settlement, announced in a joint statement on Wednesday, resolves a politically charged conflict that began in 2023 when Coutts, NatWest's private banking arm, closed Farage's accounts. The dispute attracted significant national attention and raised questions about freedom of speech in banking services.

"All I'm going to say is I'm very happy that we've resolved the matter, the war between myself and NatWest is over and I fully accept their apology," Farage told reporters.

The controversy erupted when Farage claimed his accounts were closed due to his political views, a suggestion initially denied by the bank. Internal documents later revealed that Coutts' reputational risk committee had discussed Farage's political stance, describing him as "pandering to racists" and a "disingenuous grifter".

Dame Alison Rose, who was NatWest's chief executive officer at the time, resigned in July 2023 after admitting she had made a "serious error of judgment" by discussing Farage's account with a BBC journalist. Her comments led to widespread criticism and ultimately her departure from the bank.

An independent review by law firm Travers Smith found that while the decision to close Farage's account was primarily commercial and therefore lawful, the bank had failed to communicate its decision appropriately and mishandled the subsequent complaint.

The dispute gained international attention, drawing support from political figures including then-Prime Minister Rishi Sunak and South African billionaire Elon Musk. The issue of 'debanking' – where financial institutions terminate services to customers – became a significant talking point in political and financial circles.

Last year, the UK government proposed legislation requiring banks to provide three months' notice and a detailed explanation before closing customer accounts, directly responding to cases like Farage's.

"NatWest Group and Nigel Farage MP are pleased to confirm that they have resolved and settled their dispute and the bank has apologised to Mr Farage," the joint statement said. The terms of the settlement remain confidential.

The resolution marks the end of a controversy that highlighted tensions between financial institutions, political speech, and customer rights in the modern banking landscape.

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