Brexit: information for the banking and payment sectors in the UK

This page provides information on servicing your EEA customers after the end of the transition period.

Servicing your EEA customers after the transition period

If you have customers in the EEA, you need to decide on your approach to servicing your existing contracts with them. You should take the steps available to you to ensure you act in accordance with local law and national regulators’ expectations.

We are clear that firms’ decisions need to be guided by what is the right outcome for their customers. In many cases, it would be a poor outcome for the consumer for you to suddenly stop servicing them.

Safeguarded funds

If you decide not to continue business in the EEA once the transition period ends, you should communicate this clearly to your customers in good time and ensure any customer funds are returned. Where customer funds are held in safeguarding accounts in foreign credit institutions, arrangements should be in place to ensure customers will continue to be able to claim their funds, where necessary.

Cross-border payments

Currently, banks and payment service providers do not need to provide the name and address of the originator/debtor when making payments between the UK and the EEA. However, this will be required for payments between the UK and the EEA after the transition period ends. Firms should ensure they are ready to provide the relevant customer information when making payments, including in relation to direct debit transactions.

If your firm uses the SEPA payment schemes, the European Payments Council published a statement on 14 July 2020 with further information about getting ready for the end of the transition period.