Britons living in EU to lose UK bank accounts

Puzzled as to what either of these things have to do with the UK’s membership of the European Union.

(Edited for clarity)

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Will you be accepting pi$$ed-off English asylum seekers?

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The EU seem to be insisting that British bank get a separate banking licence in each European country.

While this isn’t really a problem, some banks have decided it’s not worth doing in every country.

For instance Lloyds plan to pull out of two countries - the Netherlands and Slovakia - where they have decided it’s uneconomic to offer such accounts. If you live elsewhere in the EU with Lloyds, you’re fine.

This is what happens when you decide you no longer want to be a key decision-making member of a club, (indeed, a club where you were pretty much always a top-table executive member) but you still want access to the same club – you get told the conditions of entry.

But “the UK holds all the cards,” apparently. “They need us much more than we need them.”

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Screenshot_2020-09-23_18-01-37
1983 Labour Party Leaflet for Sedgefeild

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Why on earth did you think that manifesto from over thirty years before the referendum was in any way relevant to anything???

You do know the person who wrote that had already been the Prime Minister and decided himself that he didn’t want to leave the EU?

You do actually follow modern day politics, don’t you?

Next you’ll be saying you voted Leave because Churchill didn’t really get on with the Germans.

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Just to bring things a bit more on topic here everyone.

From the Code of Conduct:

We’ll allow discussion but let’s keep it under control here.

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I’ve no doubt this change will affect quite a lot of people but hopefully people won’t be going down the route that happened when N26 pulled the plug, of utter denial that Brexit / leaving the EU had anything to do with their decision.

Basically if you live outside the UK and don’t have a UK address then you probably need to find a local bank.

I’m not getting into all the Brexit politics if I can at all help it.

From a practical perspective, however, would it be difficult for people whose accounts are set to close to just shift their UK banking profiles to a UK address, perhaps a family member’s or a friend’s? For example, when I moved to China for a couple of years for school, I never changed the residential address on any of my banking stuff, and no one said anything, but I’m from the States, so maybe regulations allow for that here or on a “cultural” level, banks here prefer to look the other way.

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This seems like the EU actually not following their own rules. Once you have set up a bank within the EU single market, passporting rights are supposed to apply (obviously U.K. based entities are potentially losing passporting rights, but “British Bank EU Edition” based in Luxembourg should be able to service clients living in Austria, for example).

Also, N26 was different. They entered the U.K. market after the vote to leave, then left before the “final exit date” (end of transition) anyway - so they clearly just left because their product wasn’t successful as their initial entry must have factored Brexit in. They also will do a bespoke product for markets where it suits them, like the US. They just decided it wasn’t economical for them to bother with this for the U.K. - probably because they had only a small number of unprofitable customers. They also realised that the market in banking here was more competitive and rival challengers were more advanced and mature already, so competition was going to be difficult for them. It was the opposite situation in most of their other markets, where the door was open for them and there was a lack of competition.

I’m wondering if what’s happening is that the UK banks in question aren’t actually setting up their own EU entities and are instead applying for licenses for the UK bank itself to operate in each country. Under those circumstances I can see there being complexity involved.

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I don’t know the details of how it could work, but I think they may be allowed to do this (although, as you suggest, perhaps this works legally on the basis of each country’s national authority equivalent of the local banking regulator agreeing with the U.K. bank to list them as an approved “third country operator” - which, because it would be nationally agreed, may have to involve a country-by-country process).

I don’t know enough about it to really understand the legal complexities of that structure, though, or if it actually would be allowed by the EU if we ended up leaving without a deal at the end of the transition.

Hi! I’ve just read through this conversation quickly so i’m not sure if i missed something. Does anyone know if monzo intends to close accounts that are held by people who are tax resident in the EC? It would have a lot of implications for me as i use monzo extensively for traveling.

It has always been a requirement to be a UK resident to hold a Monzo account

I understand that you need a uk address, but you can have other tax residencies. Up until now…

You’re the only one who’s suggested that this is changing.

Officially - you need to be a UK resident. That means you need to reside at the address Monzo hold for you.

Monzo don’t hold EU addresses.

This page seems to suggest we only need an address and not tax residency. https://monzo.com/help/legal-stuff/tax-residency-not-uk/

So my concern is that monzo may do the same as other banks and kill off accounts for no residents.

As I said above. It’s always been a requirement to be a UK resident (ie spend at least 186 days in the UK every year) our you risk getting your account axed. The end of the transition period won’t change that; but maybe they’ll look more closely at accounts

The big change may be that movement in/out of the UK is better recorded (whatever regime we end up with). At the moment, there appears to be no monitoring of residency at all for most people, whereas UK citizens in Germany, for example, will presumably have to register their place of abode on future, just as third country nationals do already. Then there’s a nice paper trail…