1 million bank accounts have now been closed over the timespan of four years, according to the latest FCA data.
“So far this year, nearly 200,000 accounts (retail and business) have been closed.
It means more than one million accounts have been shut since 2019,” says This Is Money.
A Freedom of Information request made to City regulator the Financial Conduct Authority (FCA) indicates that the number of account closures this year could top last year’s figure of 343,350.
Daily Mail says Banks can shut accounts with as little as 14 days’ notice if they suspect it is being used to launder money, which would leave innocent customers financially stranded.
However, some of the biggest US banks have been closing or freezing customer accounts without warning.
The latest case study discloses that banks are now closing thousands of customer accounts daily with reports only growing in the last year.
“The figures, obtained through a freedom of information (FoI) request made to City watchdog the Financial Conduct Authority and first reported in the Mail on Sunday, revealed that in 2016-17, just over 45,000 accounts were shut by banks.
The total has increased every year since, climbing to just over 343,000 accounts in 2021-22 – representing well over 1,000 for every business day of the week,” says The Guardian.
When people or organizations have their bank accounts closed, they often receive little or no explanation as to why this has happened, though the banks sometimes say it is due to concerns over financial crime such as money laundering and fraud, says The Guardian’s Betsy Reed.
Banks such as JPMorgan, Bank of America, and others are drawing scrutiny from the public eye resulting in a record drop of bank deposits.
Also Read: Wells Fargo Banks to Quickly Close Down This Year
JPMorgan is Abruptly Closing Business Accounts in New Scandal
JPMorgan Chase (NYSE:JPM) is abruptly closing business accounts as well as executives’ personal banking accounts in its latest scandal.
This is not the banks first scandal closing or freezing accounts without warning or explanation, but more on that later.
JPMorgan Chase canceled vaccine skeptic Dr. Joseph Mercola’s business account and the personal accounts of Mercola Market’s CEO, his wife and the company’s CFO, according to documents obtained by the Daily Caller News Foundation.
“Mercola Market is a Florida-based health business, and Chase abruptly closed its accounts for unspecified reasons, according to the documents. Chase sent the letters on July 13, notifying the company it had until September 10 to shut down account operations and informing CEO Steven A. Rye and his wife, as well as CFO Amy Legaspi, that they have until August 11 to close their personal accounts and open new ones at another bank,” says Daily Caller.
“After careful consideration, we decided to close your accounts because of unexpected activity on this or another Chase account,” the letters stated.
“I was told for legal reasons they cannot tell me why they are closing the accounts,” a Chase representative told Rye in a voicemail.
The representative told Rye to send him the letters he received to begin the process of restoring the accounts but repeatedly stressed there was no guarantee that the effort would be fruitful. “We are going to try because you’re a good client of our institution,” he said.
“I believe they cancelled all of the accounts because of Dr. Mercola’s (our employer) opinions,” Rye told the DCNF. “He … co-authored the best selling book The Truth About COVID-19 which exposed the likelihood that this virus was engineered in a laboratory funded by the NIH. He correctly predicted the vaccines would not prevent transmission or infection of COVID-19. Dr. Mercola has been directly censored by the Biden administration and is being targeted by politically weaponized agencies.”
“For privacy reasons, we can’t discuss customer relationships, but we don’t close accounts because of political affiliations, and we didn’t do so in this case,” Chase told the DCNF last Wednesday.
Also Read: New Study Shows Nearly 190 Banks on Verge of Collapsing
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