Lord Sharkey – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Lord Sharkey on 2016-07-13.

To ask Her Majesty’s Government, further to the Written Answer by Lord O’Neill of Gatley on 12 July (HL883), which Muslim organisations affected by the withdrawal of banking services they continue to work closely with…to better understand their experiences and encourage dialogue with the banking sector”; how that working closely manifests itself; and what is their assessment of the outcomes of that close working.”

Lord O’Neill of Gatley

Ministers and officials have received representations from a wide range of organisations and individuals who have been affected by account closure. Officials have discussed the issue of access to banking with individual Muslim organisations as well as representative groups such as the Muslim Charities Forum and Bond.

The Government remains concerned about the growth of de-risking and the implications it has for NGOs, economic growth, financial inclusion and financial stability. We recognise that this trend remains a global problem, and have taken concrete steps to address this. We put the issue on the G20 agenda in 2015 and, closer to home, we have encouraged the banking sector to produce new guidance to help those affected by de-risking to open a UK bank account, by setting out what information banks will require in order to comply with relevant regulation and the questions they will need to ask. We have encouraged those affected to consider using their bank’s formal complaint service or, if they believe they have been treated unfairly or unreasonably, to consider referring the case to the Financial Ombudsman Service. We have also encouraged those affected to use the Business Account Finder provided by MoneyFacts to locate an alternative account provider.

In order to continue dialogue with the NGO community on these matters, a Government-NGO Working Group will shortly be convened to explore concerns and identify solutions on the impact of regulation and banking practices on NGO operations in fragile states. The group will examine the specific challenges faced in getting aid into hard-to-reach communities.