SEPA changes after BREXIT on December 31st 2020 will influence how the payment orders are being processed between electronic money institutions in Lithuania and the UK. There are several new requirements enacted which will affect the work of electronic money institutions in Lithuania and EU generally which make transactions with electronic money institutions in the UK.
The new requirements for SEPA transfers between electronic money institutions in Lithuania and EMIs in the UK are – first of all, the requirement to include the payer’s address in the payment order. If Lithuanian electronic money institution carries out standard credit transfers (SCT) and instant credit transfers (SCT Inst), the payer’s electronic money institution in Lithuania or UK must indicate the payer’s address, but in the case of direct debit (SDD) the obligation is on the electronic money institution in Lithuania or UK that initiates the payment.
Therefore, as of January 1st 2020 electronic payment institutions in Lithuania will have to include the payer’s address in all SDD transfers that are submitted to the payment systems. Same obligations falls also on the electronic money institutions in the UK, who make transfers to the Lithuanian electronic money institutions.
Nevertheless, for transfers as described above, the electronic money institution in Lithuania or the UK who makes the transfer will have to include the payee’s and/or payer’s BIC code of the electronic money institution in Lithuania or UK if requested by the electronic money institution in Lithuania or UK.
In case the above mentioned information would not be provided, the electronic money institution in Lithuania or UK may refuse to process the payment, or the transfer itself may be compromised.
To find out more detailed information regarding the electronic money institutions in Lithuania and or UK after BREXIT, or to find out what are the SEPA changes after BREXIT for electronic money institutions in Lithuania and or UK do not hesitate to contact our electronic money institution/SEPA lawyers in Lithuania/EU at valters.gencs@gencs.eu, info@gencs.eu, +371 67240090.