NatWest boss ‘made serious error of judgement’ in discussing Farage bank accounts with BBC reporter
NatWest boss Dame Alison Rose has admitted she made a “serious error of judgement” when she discussed Nigel Farage’s Coutts bank accounts with the BBC business editor Simon Jack.
Last week Dame Alison apologised to the former UKIP leader for the closure of his accounts and ordered an immediate review of the processes followed by its Coutts subsidiary.
The NatWest board has said it retains full confidence in Ms Rose as chief executive of the bank but the events will be taken into account when deciding her remuneration.
The chairman of NatWest, Howard Davies, said there have been “serious consequences” for the bank as a result of the “unsatisfactory” handling of the closure of Mr Farage’s account.
The story first came to light when the BBC reported Mr Farage’s account was closed as he did not meet Coutt’s financial thresholds.
Documents obtained by Mr Farage subsequently showed his political beliefs and connections formed part of the rationale.
The BBC, on Monday, apologised for the report.
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Nigel Farage has called on MPs to hold an inquiry into NatWest after one of the group’s banks, Coutts, closed his account.
Dame Alison said she believed it was public knowledge that Mr Farage was a Coutts customer and had been offered a NatWest account, and so confirmed these details to Mr Jack.
She said she repeated the Coutts stance – which Mr Farage had publicised – that the bank saw the account closures as a commercial decision.
“I would like to emphasise that in responding to Mr Jack’s questions I did not reveal any personal financial information about Mr Farage,” she added.
“In response to a general question about eligibility criteria required to bank with Coutts and NatWest I said that guidance on both was publicly available on their websites.
“In doing so, I recognise that I left Mr Jack with the impression that the decision to close Mr Farage’s accounts was solely a commercial one.”
Dame Alison said at the time of her conversation with Mr Jack she had not seen the material behind Coutts decision to close the accounts and was not part of the decision making process to close the accounts.
Instead, she said, Coutts told her in April Mr Farage’s account was being closed for commercial reasons.
“Put simply, I was wrong to respond to any question raised by the BBC about this case.”
The NatWest board believed it is “clearly in the interest of all the bank’s shareholders and customers” that Dame Alison continues in the role.
“She has proved, over the last 4 years to be an outstanding leader of the institution, as demonstrated by our results,” Mr Davies said.
Findings of the NatWest review into the closing of Mr Farage’s accounts will be made public and the terms of reference will be announced shortly, the NatWest announcement said.
The banking regulator said it had raised concerns with the NatWest group about the breach of customer confidentiality.
“We made clear our expectation that these issues should be independently reviewed and note today’s statement from the NatWest group board confirming this will happen,” the Financial Conduct Authority said.
“It is vital that the review is well resourced and those conducting it have access to all the necessary information and people in order to investigate what happened swiftly and fully.”
Russian oligarchs with links to the Kremlin can now be banned from the UK, the government has announced as part of a fresh sanctions package on the third anniversary of Vladimir Putin’s invasion of Ukraine.
The Home Office said “elites” linked to the Russian state can now be prevented from entering the UK under the new sanctions.
Those who could be banned include anyone who provides “significant support” to the Kremlin, those who owe their “significant status or wealth” to the Russian state, and those “who enjoy access to the highest levels” of the regime.
The announcement has been timed to coincide with the three-year anniversary of Russia’s invasion of Ukraine.
Another set of sanctions is expected from the Foreign Office on Monday.
Security minister Dan Jarvis said: “Border security is national security, and we will use all the tools at our disposal to protect our country against the threat from Russia.
“The measures announced today slam the door shut to the oligarchs who have enriched themselves at the expense of the Russian people whilst bankrolling this illegal and unjustifiable war.
“My message to Putin’s friends in Moscow is simple: you are not welcome in the UK.”
The UK government said Kremlin-linked elites can pose a “real and present danger to our way of life” as they denounce British values in public “while enjoying the benefits of the UK in private”.
It said they can act as “tools” for the Russian state to enable President Putin’s aggression in Ukraine and beyond.
Shortly after the war in Ukraine started on 24 February 2022, the UK imposed financial sanctions on oligarchs, including closing legal loopholes used to launder money.
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In November last year, Operation Destabilise, run by the National Crime Agency (NCA), successfully disrupted two billion-dollar Russian money laundering networks operating around the world, including in the UK which was a key hub.
They provided services to Russian oligarchs and were helping fund Kremlin espionage operations.
Ekatarina Zhdanova is said to have run a money laundering network called Smart that has been shut down. Pic: NCA
One of the key players was identified as Ekaterina Zhdanova who is alleged to have run a money laundering network called Smart. She was sanctioned by the US in November last year and is currently in French custody awaiting a trial.
A total of 84 arrests were made under Operation Destabilise in November and more than £20m in illicit funds seized.
The NCA has made a further six arrests since then and seized £1m more in case.
The networks also helped Russian clients to illegally bypass financial restrictions to invest money in the UK.
US officials have been in talks with their Russian counterparts in Saudi Arabia over the future of Ukraine for the past week.
However, neither Ukraine nor any European country was at the table, with Ukrainian President Volodymyr Zelenskyy saying he will not accept any peace deal Kyiv is not involved in.
Sir Keir Starmer has backed Mr Zelenskyy on that so all eyes will be on the prime minister when he visits Mr Trump in Washington DC this week.
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