Debanked? The new law is on your side

In September 2024, the Financial Conduct Authority (FCA) published a report on debanking. BASC provided evidence to the investigation about how shooting was being discriminated against, based on feedback from clubs and businesses.

The FCA was clear in its recommendations. Banks should not deny or terminate accounts on spurious, unfairly biased or discriminatory grounds. The regulator expected firms to ensure decisions were based on reasonable and properly considered grounds. This included cases where “reputational risk” was cited as a reason for account denial or termination.

FCA recommendations and banking changes

Since then, the FCA has been working with banks on implementing those recommendations. BASC has also been in discussion with UK Finance, the trade association for the UK financial services sector. The aim is to build greater understanding between banks and shooting clubs and businesses.

The previous Government published proposals requiring banks to provide 90 days’ notice and a clear written explanation before closing accounts. The current Government carried those proposals forward. The rule changes took effect on 28 April 2026.

There is a catch, however. The rules on account closures only apply to new accounts opened on or after that date.

Furthermore, banks may still freeze or close accounts immediately without providing the standard notice period. This can happen if they suspect money laundering, fraud or other financial crimes.

However, the changes are still a step in the right direction. They improve accountability in decision-making. A written explanation will also strengthen cases taken to the Financial Ombudsman Service.

“A written explanation will strengthen cases that are taken to the ombudsman”

There has also been a positive development in the US. A government ruling now makes it unlawful for banks to use “reputational risk” as a reason to deny financial services to “legal, but controversial industries, including firearms businesses”.

Problems still facing shooting businesses

When BASC members raise concerns about unexpected account closures, they often cross my desk. Thankfully, these cases are now fewer in number. There are only a handful each year. However, for those affected, it remains a devastating and stressful experience. We help sort things out wherever possible.

These cases usually involve an administrative or communication error on the bank’s side. We have often resolved them on a case-by-case basis with the banks involved.

However, some shooting businesses still struggle to secure new accounts or products. They are often refused at the final hurdle. This process is time-consuming and frustrating, especially when no explanation is given.

Importantly, the new debanking rules do not cover refusals to open accounts.

Why some firearms businesses are considered “higher risk”

I am not aware of any high street banks with policies prohibiting financial services for shooting businesses or clubs.

However, some decisions relate to applications being regarded as “higher risk” because of links to firearms. In turn, this is connected to potential money laundering concerns. This approach is disproportionate and unfair. It is also a global problem.

Other decisions involve non-sector-specific checks, including commercial viability and trading performance.

There is also irony in the situation. Some checks leading to refusals are required under FCA rules. Yet it is the FCA that has criticised debanking practices.

Choosing the right bank account

I am often asked which bank I recommend for clubs and businesses opening a new account. I explain that it is best to focus on practicalities and your specific needs.

I recommend visiting your nearest high street branch and starting there.

There are also specialist financial providers serving the shooting sector. However, higher service charges may apply.

At the same time, beware of online-only banks offering low-cost card payment terminals and other services. Many prohibit firearms-related transactions. Initial checks may not identify this. Later, a transaction can trigger account termination.

Debanking still happens, but the situation is improving. If you need help, get in touch.