UK banks could face fines over immigration checks on account holders
The City regulator may slap fines on banks and building societies if they don’t scrutinise the immigration status of their account holders in the search for illegal immigrants.
With the 2016 Immigration Act, from the start of 2018 banks will be asked to conduct immigration checks and inform authorities if the name of the account holder does not match those of the Home Office database.
According to The Guardian the chief executive of the Joint Council for the Welfare of Immigrants Satbir Singh criticised the move when it was announced earlier this year: "The government’s own record shows it cannot be trusted even to implement this system properly. Immigration status is very complex, and the Home Office consistently gives out incorrect information and guidance.
"Migrants and ethnic minorities with every right to be here will be affected by the imposition of these new checks."
Banks will be the ones carrying out these checks on the immigration status of their 70m current account customers. This process will be conducted every quarter and it will be regulated by the Financial Conduct Authority.
A Home Office spokesperson said earlier this year: "We are developing an immigration system which is fair to people who are here legally, but firm with those who break the rules.
"This is part of our ongoing work to tackle illegal migration. People who are here legally will be unaffected."
Once the bank has found an account that is presumably being operated by an illegal immigrant, the Home Office will double- check and adopt the necessary next steps, law firm Flatgate said.
Home Office may then force the bank to close the account or just simply freeze the individual’s assets.
They advise clients who may be affected by the measures to keep their bankers updated about their status and give them a copy of their original passport in case of a renewal or an extension. Flatgate also provides legal assistance on questions around visas.