Nigel Farage is 'paid an unspecified sum' to settle with NatWest in debanking scandal
Nigel Farage has been paid an 'unspecified sum' by NatWest to settle the debanking scandal almost two years after the bank closed his accounts.
It is understood that after NatWest agreed to pay the Reform UK leader damages he withdrew the threat of potential civil and criminal proceedings.
Coutts', which is owned by NatWest, decision to close Farage's account in June 2023 sparked a major controversy with the politician claiming the decision was politically motivated.
The financial institution, which is part of the NatWest Group and whose clients include many members of the British Royal Family, claimed that Farage failed to meet the eligibility criteria following the expiry of his mortgage.
But in private the exclusive bank had compiled a 40-page dossier exploring the 'significant reputational risks of being associated with him'.
The report concluded that Farage's views were 'at odds with our position as an inclusive organisation.'
The then-NatWest CEO Dame Alison Rose later resigned after she admitted she had discussed the details of Farage's bank account with a BBC journalist.
Here she inaccurately claimed it was because he held insufficient funds.
Farage subsequently launched legal action against NatWest which could have seen him received millions of pounds from the company, for the alleged damage to his reputation.
It is understood that after NatWest agreed to pay Nigel Farage damages he has now withdrawn the threat of potential civil and criminal proceedings
The debanking scandal led the then-NatWest CEO Dame Alison Rose to resign after she admitted she had discussed the details of Farage's bank account with a BBC journalist
A Natwest bank in London. While the terms of the settlement were confidential, a joint statement said: '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'
However, almost two years later the dispute has finally been resolved.
While the terms of the settlement were confidential, a joint statement said: '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 terms of the settlement are confidential.'
Sky News reported that Nick Candy - Reform UK's treasurer - played a crucial role in ending the dispute after he held meditation talks between both sides at a London law firm yesterday.
Following Dame Alison's resignation, the former Coutts CEO Peter Flavel was also forced to step down acknowledging that their treatment of Mr Farage had 'fallen below the bank’s high standards of personal service'.
The debanking scandal then prompted a review and attracted regulatory scrutiny.
This led the British government to propose a law last year that required banks to give customers a three-months notice and an explanation before closing their accounts.
It also prompted the City watchdog to order a change to the treatment by financial institutions of so-called politically exposed persons (PEPs).
