PART 3Access to services etc

CHAPTER 2Other services etc

Bank accounts

40Prohibition on opening current accounts for disqualified persons

1

A bank or building society (B) must not open a current account for a person (P) who is within subsection (2) unless—

a

B has carried out a status check which indicates that P is not a disqualified person, or

b

at the time when the account is opened B is unable, because of circumstances that cannot reasonably be regarded as within its control, to carry out a status check in relation to P.

2

A person is within this subsection if he or she—

a

is in the United Kingdom, and

b

requires leave to enter or remain in the United Kingdom but does not have it.

3

For the purposes of this section—

a

carrying out a “status check” in relation to P means checking with a specified anti-fraud organisation or a specified data-matching authority whether, according to information supplied to that organisation or authority by the Secretary of State, P is a disqualified person;

b

a “disqualified person” is a person within subsection (2) for whom the Secretary of State considers that a current account should not be opened by a bank or building society;

c

opening an account for P includes—

i

opening a joint account for P and others;

ii

opening an account in relation to which P is a signatory or is identified as a beneficiary;

iii

adding P as an account holder or as a signatory or identified beneficiary in relation to an account.

4

In subsection (3)(a)—

  • “anti-fraud organisation” has the same meaning as in section 68 of the Serious Crime Act 2007;

  • “data-matching authority” means a person or body conducting data matching exercises, within the meaning of Schedule 9 to the Local Audit and Accountability Act 2014, under or by virtue of that or any other Act;

  • “specified” means specified by an order made by the Secretary of State for the purposes of this section.

5

Subsection (1)(b) does not apply where—

a

a bank or building society is required to pay a reasonable fee for carrying out status checks, and

b

its inability to carry out a status check is due to its failure to pay the fee.

6

A bank or building society that refuses to open a current account for someone on the ground that he or she is a disqualified person must tell the person, if it may lawfully do so, that that is the reason for its refusal.