Nigel Farage's Legal Challenge: A New Chapter in the NatWest Debanking Saga

In a surprising turn of events, Nigel Farage, the former UKIP leader and Reform UK party leader, is exploring the possibility of launching private criminal proceedings against NatWest Group over the debanking scandal that resulted in the lender's former chief executive, Dame Alison Rose, losing her job. This move comes just weeks before the government is expected to sell its last-remaining shares in the company, nearly 17 years after its £45.5bn taxpayer bailout.

Farage has instructed Chris Daw KC of Lincoln House Chambers to examine whether there are grounds for bringing a criminal case against the high street banking giant. The decision to hire Mr. Daw KC threatens a fresh escalation against one of Britain's biggest banks at a time when some argue that Farage has become the country's most influential politician. His party finished in second place in scores of constituencies during the 2021 general election and has since been polling ahead of both Labour and the Tories for the first time.

The debanking furore, which claimed the scalp of Dame Alison Rose in the summer of 2023, centered on whether the bank's Coutts subsidiary decided to close Farage's accounts for commercial or political reasons. NatWest initially claimed the motivation was commercial before Farage obtained internal evidence from the bank suggesting that his politics had been a pivotal factor in the decision. The row sparked a firestorm under the then Conservative government, with Rishi Sunak and Jeremy Hunt, the then prime minister and chancellor respectively, indicating to NatWest's board that they had lost faith in Dame Alison's ability to lead the bank.

Since then, the City watchdog has instructed banks and other financial firms to do more to ensure that parliamentarians, senior public servants, and their families – known as politically exposed persons, or PEPs – are not treated unfairly. Farage's decision to hire Mr. Daw KC comes as NatWest is preparing to publish its annual results on Friday morning, which will come just weeks before the government is expected to sell its last-remaining shares in the company.



The move by Farage is likely to have significant implications for NatWest Group's reputation and financial stability. If successful, the private criminal prosecution could result in substantial fines, reputational damage, and potential criminal charges against individual employees. This could lead to a loss of customer trust, a decline in share price, and potential difficulties in raising capital or securing loans. Additionally, the ongoing legal battle could distract from the bank's core business operations and damage its relationship with regulators and other stakeholders.

The outcome of Farage's legal battle could also influence the broader banking sector's practices regarding politically exposed persons (PEPs) and debanking decisions. A ruling in Farage's favor could lead to greater transparency and accountability in banks' dealings with PEPs, encouraging them to be more cautious in their decisions to avoid similar public backlash and potential legal action. The case has already drawn the attention of the Financial Conduct Authority (FCA), which has instructed banks to do more to ensure PEPs are not treated unfairly. A ruling in Farage's favor could lead to further regulatory scrutiny and stricter guidelines on how banks handle PEPs' accounts.

In conclusion, Nigel Farage's exploration of private criminal proceedings against NatWest Group over the debanking scandal has the potential to significantly impact the bank's reputation and financial stability. The outcome of this legal battle could also influence the broader banking sector's practices regarding politically exposed persons (PEPs) and debanking decisions, encouraging greater transparency, accountability, and caution among financial institutions. As the government prepares to sell its remaining stake in NatWest, the bank must navigate these challenges effectively to ensure a successful transition.