Not upheld: account closure - delayed fund release and document verification requirements complaint against National Westminster Bank Public Limited Company

Decision detail

Summary

Mr B complained that NatWest took too long to release his funds after closing his account in 2023. NatWest required Mr B to complete a funds release form and provide acceptable identity verification documents. Mr B submitted documents on multiple occasions between January 2024 and July 2025, but NatWest rejected them, including an out-of-date passport. Following FOS involvement, Mr B provided a valid passport and NatWest released the funds. The ombudsman found NatWest acted fairly and in accordance with legal and regulatory anti-financial crime requirements, and did not uphold the complaint.

The Ombudsman's reasoning

NatWest is subject to legal and regulatory requirements to combat financial crime, including customer identification and identity verification. Before releasing funds, NatWest was entitled to require acceptable identity documents. The ombudsman found NatWest acted fairly in rejecting the documents Mr B submitted, including an out-of-date passport. While the ombudsman acknowledged the inconvenience caused to Mr B, the firm's actions were justified by regulatory obligations and internal policies. Once Mr B provided a valid passport, NatWest promptly released the funds.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website