Since 1 February 2020, the United Kingdom of Great Britain and Northern Ireland (United Kingdom) has no longer been a Member State of the European Union (EU). At the same time, the time frame between 1 February 2020 and 31 December 2020 was established as the so-called transition period, which in practice means that the United Kingdom remains subject to EU law and is treated as if it were still a member of the EU. However, representatives of the United Kingdom do not participate in the work of EU institutions.
The transition period is coming to an end, and 1 January 2021 will be the first day after its completion. The EU and the United Kingdom are currently negotiating an agreement on their future relationship, which is meant to be concluded before 31 December 2020. However, we are dealing with a politically-driven process and the final outcome of these negotiations cannot be predicted.
Regardless of whether an agreement for a framework for future UK-EU relations will be concluded or not, on 1 January 2021:
This means that entities based in the United Kingdom and UK citizens will lose access to the EU internal market on the existing terms and conditions, including the right to enjoy the freedom of movement of goods, services, capital and persons within the EU under EU law. Similarly, EU citizens and entities based in the EU will lose access to the UK market on the existing terms and conditions, on the basis of the aforementioned freedoms guaranteed by EU law.
The above process will also result in changes in the use of banking services which, due to their cross-border nature, could be linked to the United Kingdom. The areas in which these changes may take place include in particular:
The bank monitors developments related to brexit and its potential consequences on an ongoing basis. If, during the brexit process, any events occur that may require appropriate action to be taken by clients, the bank will provide information about this in a separate message.
1 Brexit is the name used to describe the withdrawal of the United Kingdom from the EU.
2 The SHA option means that the fees and commissions due to the transferring bank are paid by the payer, while the costs of the recipient's bank and intermediary banks involved in the foreign transfer are covered by the payee. The OUR charging option means that the payer agrees to pay all the commissions and bank fees due for making the foreign transfer, including the costs of intermediary banks involved in the foreign transfer, while the BEN charging option means that commissions and fees of all banks involved in the foreign transfer are paid by the payee.
3 Regulation (EU) 2015/847 of the European Parliament and of the Council of 20 May 2015 on information accompanying transfers of funds and repealing Regulation (EC) No 1781/2006 (Text with EEA relevance), O.J. L 141 of 5.6.2015, pages 1-18.