Expat panic starts as Banks Shut Accounts Amid Fears Of Post Brexit Restrictions.
UK banks will have no choice but to abide by new rules after the end of Brexit transition period on January 1.
They will lose what is known as EU ‘passporting’ rights from Dec 31, prompting a service shake-up. Banks have now started to inform British ex-pats in Europe that their accounts will be withdrawn in preparation. Thousands of ex-pats living in the EU have been told their bank accounts will be closed owing to Brexit. The Financial Conduct Authority (FCA) had stressed to banks that they must give at least two months’ notice of plans to close any accounts in credit. It said some were not informing customers in good time.
Following the UK’s full departure from the EU, UK banks will no longer be allowed to provide services to customers in the EU without the right banking licences.
Known as passporting, a system for banks in the EU which allows them to trade freely in any other state in the European Economic Area (EEA) without the need for more authorisation.
Adam Firth, on Spain’s Costa del Sol, told how it’s affected him – he said: “I got an email and it clearly stated my account was being withdrawn and that I needed to transfer my funds out in 7 days before closure, my mistake was not having the account registered to my UK address, it seems everyone like me who has their bank account registered to a Spanish account will face what I have, I don’t like Spanish banks they are awful, so I will look at an online bank like Starling and register it to a UK address, just in case”
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