Barclays’ accounts move attacked

Barclays is set to come under renewed pressure over a decision to pull the plug on companies offering a “lifeline” to families in poorer countries.

Barclays has been urged not to close the accounts of 250 UK money-transfer companies

Campaigners have been urging the bank not to close the accounts of 250 UK money-transfer companies and a delegation led by shadow international development minister Rushanara Ali will deliver a 23,000-strong petition to Downing Street on Wednesday.

Double Olympic champion runner Mo Farah, who came to Britain from Mogadishu at the age of eight, has been urging his 800,000-plus Twitter followers to “support vital money flows to families in Somalia”.

The petition calls on the UK Government, regulators and Barclays to take urgent action to make sure millions of people do not see their “vital lifeline” cut off.

Ms Ali, who is Labour MP for the east London constituency of Bethnal Green and Bow, has said many of her constituents are worried about Barclays’ decision. Barclays has not pulled out of the market altogether and the majority of companies it gave notice to are understood to have been able to find another bank.

The industry generally has been looking at how money laundering controls can be tightened. Last year, HSBC agreed to pay US authorities a record 1.9 billion US dollars (£1.2 billion) settlement over accusations that it allowed rogue states and drug cartels to launder billions of pounds through its US arm.

Barclays has said in a statement: “As a global bank, we must comply with the rules and regulations in all the jurisdictions in which we operate. The risk of financial crime is an important regulatory concern and we take our responsibilities in relation to this very seriously.

“Whilst Barclays makes no comment on specific companies, it is recognised that some money service businesses don’t have the necessary checks in place to spot criminal activity, with the degree of confidence required by the regulatory environment under which Barclays operates.

“Abuse of their services can have significant negative consequences for society and for us as their bank. We remain happy to serve companies who, in our opinion, have sufficiently strong anti-financial crime controls and who meet our amended eligibility criteria.”

Barclays said it has been working with the UK Government and other bodies to discuss the issues, “especially given the regulatory and financial crime pressures upon banks”. It said: “Where appropriate we have provided customers with additional time to find alternative banking services”.

Source: http://www.thisisguernsey.com/business/city-news/2013/08/06/barclays-accounts-move-attacked-2/