British Bank Awards Itself New Powers to Limit Cash Transactions
Aug 14, 2023
Major UK bank NatWest has established ‘sweeping new powers’ allowing it to limit cash withdrawals and deposits on both a daily and annual basis, raising concerns that it is ‘forcing customers towards a cashless society.’
The Telegraph reports NatWest has issued a leaflet advising current account holders that it is introducing new conditions from September ‘giving us the right to set limits on inbound and outbound payments’, which could include undefined limits on cash-based transactions.
In a statement reminiscent of the recent scandal in Australia where Westpac Bank blocked a professional poker player’s account after he paid in cash winnings, NatWest say the new rules are to ‘protect our customers from the risk of fraud’ and that they are ‘nothing to do with limiting customers’ access to cash.’
Anne-Marie Morris, a Member of Parliament who sits on the Commons Treasury Committee, points out that tackling financial crime should not come at the expense of personal freedoms.
Of course we must ensure money laundering is not allowed to flourish, but there is a balance and society cannot be deprived of cash because it suits banks and regulators. The fraud and money laundering rules seem to be wagging the tail of the cash dog.
Responding to recent discussion around enhanced regulation of the banking sector and protections for cash access and acceptance, Prime Minister Rishi Sunak agreed ‘people still need access to their cash’. He has, however, been resistant to calls from within his party for new legislation that would oblige businesses to accept cash in addition to cashless options, saying companies ‘should be able to choose the forms of payment that they will accept.’