Finance sector urged to act on debanking

Last year “debanking” was added as a noun to the Collins English Dictionary, defined as “the act of depriving a person of banking facilities”. That was when debanking was frequently in the news and I was receiving weekly updates from shooting clubs and businesses that had been refused new accounts or had existing accounts closed. 

The Telegraph, BBC and GB News were among the national media that interviewed BASC for their investigations into debanking, and the human and financial impact of debanking in our sector was featured in newspapers, radio and television. There was support from MPs and ministers and promises to introduce banking regulations to enforce changes. 

Things have gone quiet of late, but I continue to receive debanking reports from members, albeit less frequently than was the case 12 months ago. Since last year the Financial Conduct Authority (FCA) has been investigating the causes and impacts of debanking and BASC has twice provided evidence to that. The FCA’s initial report acknowledged that the “gun trade and sports shooting” were facing challenges with debanking. 

However, in that first publication, shooting and “sex work” were presented together as sectors that “may divide wider opinion, of obtaining or maintaining a payment account”. 

It was bad enough that gunshops selling shotguns to farmers were getting caught up in red tape meant to target the risks associated with the international arms trade. But now we had the financial regulator lumping in sex workers with family-run businesses, suggesting there was something immoral or even illicit about the recreational shooting sector. 

When the FCA approached us for the next stage of its review, I explained our concerns about how shooting was being inappropriately perceived and treated by the financial sector, and provided feedback we had received from members as evidence of this. You would be forgiven for missing the FCA’s final report because it hardly featured in the news. 

However, it contains some important findings and recommendations that echo the evidence and suggestions we submitted. The FCA is clear that banks should not be denying nor terminating accounts on spurious or unfairly biased grounds, or for discriminatory reasons. Where decisions are automated, firms must monitor these systems and mitigate risks of bias and worse outcomes for specific groups of customers. 

The FCA expects firms to ensure their decisions are based on properly considered grounds, including where they are citing “reputational risk” as a basis for account denial or termination. Explanations about decisions should be given to the customer, and in the case of account closures the required notice period must be given. 

Unfair 

The authority’s report was published on 4 September and the regulator is working with the banks on the implementation of its recommendations. The banks know they must improve their decision-making processes and communications, and they know from the FCA’s interim and final reports that they have been unfairly treating the shooting sector. 

So does this mark the beginning of the end for the widespread debanking of the shooting sector? I hope so, and BASC will support members challenging any new cases that fall foul of the FCA recommendations. 

We are offering support to the financial sector to improve its understanding of recreational shooting, so its decision-making processes are revised to reduce the risk of inappropriate debanking. I will provide an update on that in due course.

Debanking of the shooting sector is not unique to the UK and we are working with the World Forum on Shooting Activities on communications with the financial sector at EU and international level. 

Have you been debanked since 4 September 2024? If your shooting club or business has experienced unexplained banking service refusals or account closures email me at conor.ogorman@basc.org.uk