Liz Truss refused bank account for Tory leadership campaign in another debanking scandal
Liz Truss refused bank account for Tory leadership campaign in another debanking saga
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Liz Truss was refused a bank account for her 2022 Conservative leadership campaign because of her status as a politically exposed person, allies close to the former Prime Minister have claimed.
Truss was debanked during her £500,000 campaign to succeed Boris Johnson in Number 10 after Monzo declined to give her the go-ahead without providing a reason for the decision.
The former Prime Minister’s campaign team eventually opted to go elsewhere.
A source familiar with Monzo told The Mail on Sunday that the 48-year-old was “turned down because she was a PEP”.
Tory leadership contenders Rishi Sunak and Liz Truss at the Queen Elizabeth II Centre in London
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Banks must consider whether PEPs are more susceptible to involvement in bribery or corruption under regulations introduced during the United Kingdom’s membership of the European Union.
PEPs also face banks applying enhanced due diligence to ensure they do not use their institution for money-laundering or accepting cash for illegal sources.
Truss last month criticised existing rules covering PEPs in a piece for the Telegraph.
She argued: “In law, it makes elected representatives automatically subject to added suspicion.
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Nigel FaragePA“It serves as yet another example of legacy EU law that is still on the UK statute book, years after our departure from the bloc, and which is restricting the room for manoeuvre for men, women and businesses up and down the country.”
Truss added: “Not being able to get a mortgage or open a new bank account... is hardly going to draw many new aspiring candidates into the pool of potential future MPs.”
Monzo, which was also accused of refusing to give Chancellor Jeremy Hunt an account, said in a statement: “Our ambition is to make money work for everyone, which means that we’re politically neutral and personal views play no part in our policies or decision making, including eligibility for a Monzo account. Any suggestion otherwise is categorically untrue.”
Debanking emerged as a major political issue after Coutts closed Nigel Farage’s personal and business accounts.
Coutts bank in LondonPAThe private bank cited in a dossier the former Brexit Party leader’s views as an issue ahead of its decision.
The Financial Conduct Authority has since launched a major probe into debanking and its rules on PEPs.
Despite reportedly encountering account issues, Truss defeated Rishi Sunak in the race to replace Johnson by 21,000 ballots.
Truss’ time in Number 10 was short-lived as she served as Prime Minister for just 49 days.
Sunak eventually succeeded his leadership rival after Johnson and Commons Leader Penny Mordaunt pulled out of the race.