Dubai: Barclays UAE started closing accounts on Monday and could potentially lock out 1,500 personal and business customers due to “local and global regulatory requirements”.

A spokesperson for Barclays UAE told Gulf News that following a review of accounts in line with local and regulatory requirements, customers had been contacted to update their personal or company details. Failure to update details would result in the account being closed and a managerial cheque issued to the account holder.

A maximum of 1,000 personal and 500 business accounts could be closed, the spokesperson said.

The spokesperson said that the total 1,500 possibly affected accounts represented just 2 per cent of Barclays UAE account and that they would only be closed after the bank “fully exhausted all communication channels.”

One affected customer, who would only give his first name, Martin, said his company account had been closed with an estimated “few hundred thousand dirhams.”

He told Gulf News that his relationship manager had advised him that the bank would be closing accounts. However, when he attempted to check his account online on Monday night it had already been closed.

Martin, who was in the Emaar branch on Tuesday, said he was told by branch staff that his account had been closed due to scaling down.

Last month, Barclays announced it was putting its UAE retail arm up for sale.

However, the spokesperson said that account closure were not associated with plans to scale back its retail operations.

Another Barclays customer at the Emaar square branch who asked not to be named, confirmed his company account had been closed without notification.

The spokesperson said physical letters were sent out on August 6 and 15 and “several” calls, emails, and sms were made to customers requesting them to update their details.

Barclays said account closures are an ongoing process and that they would work with impacted customers on a case-by-case basis. Concerned customers are requested to contact the bank immediately.

The spokesperson confirmed that closed accounts will not be re-opened but that customers can open new accounts with the bank.

Last month, the British bank announced it had put its UAE retail banking franchise for sale with its consumer lending business wound down over 15 months.

Local media reported that Barclays will retain its two branch licences but reduce staff. The bank has targeted 3,700 staff cuts from its global workforce.