Consequences of Brexit on banking Thread poster: Baran Keki
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Baran Keki 
Türkiye
Local time: 15:57
Member
English to Turkish
I don't know much about Brexit and I'm also ignorant of the previous arrangement between the UK and the EU regarding banking and money transfers. I've been working with a few UK translation agencies where I'm getting paid in EUR using my Transferwise SEPA account (which works like a local bank transfer -in the EU- where I get the full amount without any deductions).
Now that the UK is out of the EU, will there be any changes in the existing banking arrangements? Will a UK translation agenc... See more I don't know much about Brexit and I'm also ignorant of the previous arrangement between the UK and the EU regarding banking and money transfers. I've been working with a few UK translation agencies where I'm getting paid in EUR using my Transferwise SEPA account (which works like a local bank transfer -in the EU- where I get the full amount without any deductions).
Now that the UK is out of the EU, will there be any changes in the existing banking arrangements? Will a UK translation agency be able to make EUR payments into a German bank account as usual or will there be some financial hindrances/setbacks imposed on them? In short, would it be wise to ask to be paid in GBP rather than in EUR from now on?
Thanks ▲ Collapse
| | | | Tom in London
United Kingdom
Local time: 13:57
Member (2008)
Italian to English
| Can't get any answers | Jan 5, 2021 |
Baran Keki wrote:
I don't know much about Brexit and I'm also ignorant of the previous arrangement between the UK and the EU regarding banking and money transfers. I've been working with a few UK translation agencies where I'm getting paid in EUR using my Transferwise SEPA account (which works like a local bank transfer -in the EU- where I get the full amount without any deductions).
Now that the UK is out of the EU, will there be any changes in the existing banking arrangements? Will a UK translation agency be able to make EUR payments into a German bank account as usual or will there be some financial hindrances/setbacks imposed on them? In short, would it be wise to ask to be paid in GBP rather than in EUR from now on?
Thanks
I've been trying to find out about this, but I can't get any answers. All I know is that the trade agreement recently concluded between the UK and the EU does not cover services, e.g. banking, e.g. translation.
I am waiting to see what happens with various payments from Italy to the UK that I'm expecting this month.
| | | | | The UK will remain part of a key euro payments system | Jan 5, 2021 |
UK-based payment service providers have access to central payments infrastructure such as the Single Euro Payments Area (SEPA), which allows customers to make cross-border payments at a low cost, or sometimes for free.
In March 2019, the UK's application to remain in the geographical scope of SEPA schemes was approved, meaning that euro SEPA payments can continue to be made through existing arrangements - and this isn't affected by the newly agreed trade deal.
So... See more UK-based payment service providers have access to central payments infrastructure such as the Single Euro Payments Area (SEPA), which allows customers to make cross-border payments at a low cost, or sometimes for free.
In March 2019, the UK's application to remain in the geographical scope of SEPA schemes was approved, meaning that euro SEPA payments can continue to be made through existing arrangements - and this isn't affected by the newly agreed trade deal.
Source: https://www.moneysavingexpert.com/family/brexit-what-it-means-for-you/
[Edited at 2021-01-05 09:11 GMT] ▲ Collapse
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From the Senior Trade Advisor at the British Embassy in The Hague:
The UK has left the EU and as a result is no longer in the SEPA area. It is not in such detail mentioned in the Agreement, but from earlier publications I understand that the UK will likely participate in the SEPA as third country, provided that the UK keeps complying with the relevant participation criteria. This will mean that some extra information needs to be provided to make a transaction, such as the payer’s ... See more From the Senior Trade Advisor at the British Embassy in The Hague:
The UK has left the EU and as a result is no longer in the SEPA area. It is not in such detail mentioned in the Agreement, but from earlier publications I understand that the UK will likely participate in the SEPA as third country, provided that the UK keeps complying with the relevant participation criteria. This will mean that some extra information needs to be provided to make a transaction, such as the payer’s address. Probably good to check with your bank whether new procedures apply.
For reference:
• https://www.europeanpaymentscouncil.eu/news-insights/news/brexit-1-january-2021-onwards-get-ready-end-transition-period
• https://www.gov.uk/government/publications/eu-exit-sis-for-payment-services-e-money-and-the-sepa-regulation/draft-payments-and-electronic-money-amendment-eu-exit-regulations-and-the-credit-transfers-and-direct-debits-in-euro-amendment-eu-exit-regu
• https://www.finextra.com/newsarticle/37140/bank-of-england-warns-of-brexit-payment-disruption ▲ Collapse
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| | Tom in London
United Kingdom
Local time: 13:57
Member (2008)
Italian to English
| Thanks Thomas | Jan 5, 2021 |
From reading the link you posted, it appears that UK-based translators need to ensure they include their receiving bank's BIC code on all invoices (along with their other bank details).
I do that anyway and it's on several invoices issued in 2020 and awaiting payment in 2021. I will be waiting to see if the money arrives....
[Edited at 2021-01-05 13:20 GMT]
| | | | | Money arriving | Jan 5, 2021 |
Tom in London wrote:
I will be waiting to see if the money arrives....
There doesn't seem to be any reason why it shouldn't.
I tried to set up a SEPA transfer from my account in Luxembourg to my account with Santander UK¹, and it was business as usual. The BIC was automatically filled in when I entered my UK IBAN. I could optionally enter an address. I didn't complete the transfer, of course.
As for TransferWise, they have notified their account holders that they have completed the regulatory steps required for their eurozone account holders to be able to use their accounts as before.
1) While many UK banks have closed expats' accounts because of Brexit, Santander UK have said they won't. I still have the account that I opened with them in the 1990s, back when it was Alliance & Leicester. They haven't notified me of any changes due to Brexit. Nor have my eurozone banks.
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The UK is no longer in the EU but we're still on the planet just like the other 160-odd non-EU countries.
And we're not like Burma or something and subject to sanctions.
Of course payments will continue to be made!
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Tom in London
United Kingdom
Local time: 13:57
Member (2008)
Italian to English
| You keep saying this | Jan 5, 2021 |
Chris S wrote:
The UK is no longer in the EU but we're still on the planet
The UK left Planet Reality some time ago.
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Tom in London wrote: Chris S wrote:
The UK is no longer in the EU but we're still on the planet The UK left Planet Reality some time ago.
Well, yes, but that is a whole other story...
When it comes to money, pragmatism will always prevail. But I’m sure a few dodgy agencies will manage to use it as an excuse to pay late.
| | | | Baran Keki
Türkiye
Local time: 15:57
Member
English to Turkish
TOPIC STARTER | No arguments there | Jan 5, 2021 |
Chris S wrote:
Of course payments will continue to be made!
I don't doubt that payments will continue to be made. My question was whether bank transfers from the UK to the EU will be the same as before (meaning zero bank deductions). I lose a fair bit of my hard-earned cash to bank fees (intermediary banks) when I'm paid in USD by American clients, and I'd hate to see this kind of thing happen to the bank transfers between the UK and the EU. But judging by what others say here so far that won't be the case (at least for now?).
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Baran Keki wrote: Chris S wrote:
Of course payments will continue to be made! I don't doubt that payments will continue to be made. My question was whether bank transfers from the UK to the EU will be the same as before (meaning zero bank deductions). I lose a fair bit of my hard-earned cash to bank fees (intermediary banks) when I'm paid in USD by American clients, and I'd hate to see this kind of thing happen to the bank transfers between the UK and the EU. But judging by what others say here so far that won't be the case (at least for now?).
Ah, OK, that I don’t know.
The way I look at it, it’s the client’s problem. If I bill them 100, I should receive 100.
Whenever I’ve made a foreign payment, I’ve had the choice of whether to pay the fees or pass them on. So it must be the same for them.
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