The issue of de-banking or closing bank accounts without reason has clearly become a global concern after US President Donald Trump signed an executive order to prevent banks from rejecting customers based on political or religious beliefs.
The practice was previously implemented on the grounds of risk management (de-risking) to prevent banks from dealing with customers linked to crime, politics, dubious financial sources or who could damage the reputation of the financial institution.
However, Trump abolished the practice after claiming that several giant banks closed their accounts because of conservative views. The move sparked heated debate because it was seen as forcing banks to accept customers regardless of background.
Critics argued that the directive ultimately risks maintaining bank relationships with high-risk customers.
In the United Kingdom, a similar issue sparked controversy when an elite bank closed an account belonging to a political figure in 2023. The revelation that political views were also a consideration sparked public criticism, leading the government to introduce new conditions including the obligation to give 90 days' notice before the account was terminated.
Meanwhile, the European Union (EU) has taken a more quiet and technical approach. Banking institutions under EU supervision have been given guidelines to balance the enforcement of anti-money laundering laws with ensuring people's access to basic financial services.
This stark difference shows that the issue of de-banking is no longer just a matter of banking compliance, but rather has crossed political rights, financial security and the continuity of international trade, raising the big question of whether banks can still be considered a safe haven for people's assets?
