N v RBS: Terminating a banking relationship without notice where money laundering is suspected

A recent High Court judgment has held that a bank was not in breach of contract for closing a customer's account without notice in circumstances where the bank had suspicion of money laundering on the customer's account. The bank had acted in accordance with express contractual provisions which allowed it to terminate the banking relationship without notice "in exceptional circumstances". The decision is a prompt for banks to review contractual arrangements with customers to ensure they contain provisions allowing them to take necessary action in the event of a suspicion of money laundering.

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