Plans to make closure of accounts more transparent may ‘undermine’ measures against money laundering

New government rules meant to boost the transparency of bank account closures after Nigel Farage’s campaign against private lender Coutts, could have damaging consequences for fighting financial crime, industry and law enforcement sources have warned.

Planned changes by the Treasury will force banks to spell out why they are shutting an account and give three months’ notice before ending their relationship with a customer. City minister Andrew Griffith said it would create “a much fairer playing field” by giving consumers more time to appeal against their lenders’ decisions.