UK banks accused of ‘arbitrarily’ closing accounts belonging to Muslims

The Muslim Council of Britain (MCB) has written to the prime minister to raise concerns over the “arbitrary closure” of bank accounts belonging to Muslim individuals and organisations.

The letter, also addressed to the chancellor, leaders of the opposition parties, and the permenant secretary to the treasury, describes a recurring issue of banks withdrawing services from British Muslims over the past 10 years “without adequate transparency and recourse for those affected”.

The Council said that this practice has continued without meaningful action from successive governments.

The move comes days after figures obtained from a Freedom of Information (FOI) request revealed that British banks are collectively shutting around more than 1,000 accounts every working day.

The details were revealed over the weekend by The Mail on Sunday, which made the request to the Financial Conduct Authority (FCA).

According to the newspaper, the number of accounts being closed down has increased significantly in the recent years, jumping from below 50,000 in 2016 to nearly 350,000 in 2022.

The details follow a decision by NatWest chief executive Alison Rose to step down after admitting she gave inaccurate information to the BBC about the closure of ex-UKIP leader Nigel Farage’s personal account with Coutts.

On Saturday, Farage announced on social media that he was launching a new campaign group and website for individuals and small businesses who have "faced unjust treatment from banks", particularly those that have had their accounts "abruptly closed".

“We urge for an impartial review that not only addresses the mechanisms behind bank account closures but also examines why British Muslims are disproportionately affected by this issue,” said Zara Mohammed, the secretary general of the Muslim Council of Britain. “Our affiliates are ready to share their experiences and recommendations to ensure fair treatment for all.”

She continued: “We call for the protection of universal banking rights, irrespective of religious or cultural backgrounds and political views, ensuring equitable access to financial services for all.”

The MCB said it supports a call for a comprehensive review of banking practices, scrutinising internal decisions leading to account closures and denial of services.

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