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Many British expats who live across Europe are facing a banking “chaos” as UK lenders cancel accounts and scramble to prepare for life outside the EU.
The end of the ‘standstill’ post-Brexit transition period on December 31 will see British banks having to abide by different rules if they want to operate in mainland Europe.
Posts in the daily mail Uk have stated that, from January 1 they will need country-specific licences in order to provide certain products which has prompted some banks to terminate services, with expats told mortgages, credit cards and savings accounts are being withdrawn.
Many British expats who live across Europe are facing a banking “chaos” as UK lenders cancel accounts and scramble to prepare for life outside the EU.
The end of the ‘standstill’ post-Brexit transition period on December 31 will see British banks having to abide by different rules if they want to operate in mainland Europe. That’s because ‘passporting’ rules that allow financial institutions to provide services across the EU will no longer be valid after the transition agreement expires.
From January 1 they will need country-specific licences in order to provide certain products which has prompted some banks to terminate services, with expats told mortgages, credit cards and savings accounts are being withdrawn.
Some banks such as Lloyds bank, have already written to its customers
Under current rules, banks in the UK can offer services across the EU’s 27 member states because the countries are bound by the same regulatory framework.
However, passporting expires at the end of the year and, while the UK has legislated so that EU banks can continue to provide services for customers in Britain, the EU has not done the same.
Meanwhile, unless a trade deal is agreed with the EU, UK financial institutions say they may have to shut down thousands of accounts.
Zakynthos Informer reported on this in September, 2020
For more details click on post. Expats to lose bank accounts due to Brexit
