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Revolut, the fast-growing money app, will temporarily move the regulation of its Irish clients to Lithuania.
The company currently operates here under a UK e-money license under what are known as “passport” arrangements.
But Brexit has forced him to migrate his business to Lithuania, a member of the European Union.
The move will mean that your customers here who have direct debits and other recurring payments from their Revolut accounts will have to contact any business that regularly pays from their accounts to update them on this.
This is because the Revolut IBAN (International Bank Account Number) will change from one that begins with GB to one that begins with LT.
Revolut says it has a million clients in this country.
He said that it has “applied to be authorized by the Central Bank as an electronic money institution as part of our post-Brexit strategy of operating around three European centers.”
He said the licensing process in Ireland is ongoing.
While this process is ongoing, to ensure that Brexit does not affect its Irish customers, it plans to temporarily migrate its accounts to Revolut’s EU-based e-money licensed business, based in Lithuania.
“Our plan is that once the Irish Central Bank clears business in Ireland, we will migrate our Irish Revolut clients to the Irish entity and, in due course, many of our other Western European clients.”
After Brexit, on December 31, Britain will renounce its so-called “passport rights” and the British regulator will no longer be able to monitor the accounts of EU citizens.
Passport rights refer to the rights that allow banks and financial services companies to operate their businesses in any EU, without being subject to additional authorization from each country.
The change will mean that Revolut’s Irish customers will be regulated by the Bank of Lithuania, which granted Revolut an electronic money license in 2018.
Daragh Cassidy of the price comparison site Bonkers.ie said the change would mean that anyone who receives a payment to their Revolut account from their employer must inform them that the account details have changed.
“You should also update any direct debits or standing orders that you have, otherwise they could bounce and you could receive referral fees, which will also put your credit rating at risk,” he said.
For most Revolut customers who top up their account through the app using their primary bank’s debit card, there will be no change, Cassidy said.
Account migration will not begin until December.
Revolut said it will notify customers in advance that their IBAN will change and give them the details of their new IBAN on the day of migration.
Online editors
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