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Revolut is moving the user accounts of its Irish clients to Lithuania.
The movement for the payment application will take place in December, coinciding with Brexit.
The company is currently licensed in the UK with an electronic money or “electronic money” license.
However, it does not have a banking license, and has so far been using that same e-money license to operate in Ireland under EU ‘passport’ rules.
This allows a bank or financial institution licensed in one EU country to “passport” or transfer the license to another country, without having to obtain full regulatory approval.
However, due to Brexit, Revolut’s UK e-money license will no longer be valid in Ireland at the end of the year.
The company will therefore transfer its Irish users to its business in Lithuania, where it also has a banking license.
What is changing?
This means that Irish clients will be regulated by the Central Bank of Lithuania and not by the Financial Conduct Authority of Great Britain (FCA) as is the case today.
This will cause the customers’ IBAN and BIC numbers to change.
This is because all Revolut IBANs currently start with a “GB” as this is the one used for all UK accounts.
This will now change to ‘LT’.
For most clients, no action is required.
But those who receive their salary in their account or have direct debits will have to update their data.
Those who are paid on their account by their employer should inform them that their account details have changed.
Customers should also update any direct debits or standing orders, otherwise they could bounce.
Revolut is working to obtain an electronic money license from the Central Bank of Ireland, although no firm deadlines have been agreed.
Currently more than four million people use its services, including some 250,000 Irish users.
Has previously warned customers on the consequences of a possible no-deal Brexit.
Main image: In this photo illustration, the Revolut logo is seen on a Mastercard debit card. Image from: SOPA Images / SIPA USA / PA Images
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