Not upheld: account closure and blocking - sanctions compliance complaint against Bank of London and The Middle East plc trading as Nomo Bank

Decision detail

Summary

Mr G complained that Nomo Bank unfairly blocked and closed his account after detecting a login from Russia. Mr G explained he was visiting his Russian fiancée's family and had no business dealings or assets in Russia. Nomo closed his account citing concerns about potential sanctions breaches. The ombudsman found the complaint not upheld, determining that Nomo's actions were reasonable and proportionate given its legal and regulatory obligations to prevent financial crime and comply with sanctions. Banks are entitled to make commercial decisions about customer relationships and assess risks according to their own policies, and the account terms permitted closure with notice.

The Ombudsman's reasoning

Nomo has extensive legal and regulatory obligations to prevent financial crime and comply with sanctions regulations. Banks are entitled to make commercial decisions about which customers to serve and must assess risks across multiple jurisdictions. While Mr G's visit to Russia was innocent, Nomo reasonably assessed that continuing the account relationship could constitute a breach of sanctions obligations, placing it outside Nomo's risk appetite. The account terms permitted closure with notice, and Nomo provided one month's notice. The ombudsman cannot question how banks undertake regulatory reviews or challenge the information they deem necessary for compliance.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website