-The UK’s financial regulator, the Financial Conduct Authority, is set to impose fines on banks that do not offer free cash withdrawal services within a three-mile radius of consumers and businesses.
-Shortages of bank branches and accessible ATMs have become a problem for many UK citizens, leading consumer advocacy groups to launch a campaign for better access to cash.
-British businesses engaging in trade with Ukrainian partners are also facing account closures by UK banks.
UK Banks Threatened With Fines Over Free Access To Cash Withdrawals
The British government is planning to take a tough stance on UK banks in order to ensure easy public access to cash through ATMs & bank branches. According to reports, failing to comply could result in fines on the banking entity.
Background: Shortages Of Bank Branches And ATMs
Shortages of bank branches and accessible ATMs have become a problem for many UK citizens. This has led consumer advocacy groups to launch a campaign for better access to cash.
Proposed Regulations For Banks
His Majesty’s Treasury is set to release new guidelines in the coming days outlining its expectations for how banks should ensure public access to physical cash. Under the proposed regulations, the Financial Conduct Authority (FCA) will gain the authority to impose fines on banks not offering free cash withdrawal services. Additionally, individuals with current accounts should not encounter hidden fees when withdrawing money. It is still uncertain if this three-mile rule will also apply to rural communities nationwide.
Account Closures For Businesses Trading With Ukraine
British businesses engaging in trade with Ukrainian partners are also facing account closures by UK banks as reported by Politico.
The upcoming regulations from HM Treasury are intended as an effort by the government improve convenience and accessibility for citizens who rely on hard currency transactions or lack digital payment methods. Meanwhile, it remains unclear whether or not this new policy will be enough stop account closures of those trading with foreign partners like Ukraine .