Norfolk MP Claims Tory Activists Deemed 'Politically Exposed', Struggle with Mortgages

In a recent online video, Norfolk MP Brandon Lewis has made a controversial claim that Tory activists are now considered 'politically exposed persons' (PEPs) by banks. PEPs, a term often used in the financial sector, refers to individuals who are believed to be at a higher risk of involvement in bribery or corruption due to their position and influence. 

As a result, these individuals are subject to additional scrutiny by banks, which can make it more difficult for them to access banking services.

Lewis, the MP for Great Yarmouth, stated that this issue would be his top priority if he had the power to pass any law through parliament. He did not elaborate on whether he was referring to volunteers in his constituency or high-profile donors who have supported him financially in the past.

This statement has sparked criticism from Labour opponents who argue that the lack of clarity leaves room for misinterpretation. Mike Smith-Clare, a Labour councillor, urged Lewis to specify whether he was referring to donors or activists. "It would be nice to have some clarity regarding this - especially where assumptions could be made regarding the possibly unnecessary protection of donors, donations and their various reasons and sources," Smith-Clare said.

The issue of PEPs gained visibility earlier this year when Nigel Farage, former leader of UKIP, cited it as one of the reasons why he was being denied bank accounts. The news about Farage's banking troubles led to widespread outrage and prompted the Treasury to raise concerns with banks about people being 'de-banked'.

David Pett, senior partner at MJP Conveyancing, weighed in on the controversy, saying, "The concept of 'politically exposed persons' is designed to prevent money laundering and corruption. If applied to political activists because of their affiliations, it could potentially infringe on their right to participate in political activities without undue interference. This issue definitely needs further investigation."

Lewis has previously received nearly £50,000 in donations from Russian oligarchs between 2014 and 2022. However, there is no suggestion of wrongdoing related to these donations, and it is not known whether the donors are classified as PEPs.

The debate about the classification of Tory activists as PEPs by banks raises important questions about the intersection of politics and finance. It underscores the need for greater transparency and clarity in how financial institutions deal with politically active individuals.