The de-banking of customers, and the legal and regulatory implications that can arise, are not new issues. However, those issues have come into sharp focus following recent publicity surrounding a high-profile account closure. This article considers what payment services firms can expect next following the increased scrutiny from customers, media, government and the regulators.
WHAT CAN / SHOULD CUSTOMERS TO BE TOLD?
It has always been the case that payment services providers (PSPs) must be on heightened alert when providing financial facilities to a politically exposed person, due to the higher risk of money laundering and bribery challenges. When presented with financial crime concerns, PSPs face a balancing exercise of meeting regulatory obligations by stopping wrongful use of payment services, whilst not inadvertently tipping off a customer – which can be a fine line to tread.
and then 