European Payment Council (EPC) reminder on the implications for all single euro payments area (SEPA) payment scheme participants after Brexit

Date: 21/12/2021
Source: European Payment Council

On 21 December 2021, the European Payments Council (EPC) published a reminder on the implications for all single euro payments area (SEPA) payment scheme participants after Brexit. On 1 January 2021, the UK left the EU Single Market and the Customs Union. Considerably earlier than that, the EPC had requested many times that all SEPA payment scheme participants implement the measures described below in order to guarantee a continued smooth processing of cross-border payments involving a UK-based SEPA payment scheme participant after 31 December 2020. The reason behind this is that the respective EU and UK Funds Transfer Regulations ask for additional information to be sent with payments into and from the UK, as the UK is now a third country under those Regulations following Brexit.
SEPA transactions to be executed or settled as of 1 January 2021 involving a UK-based SEPA payment scheme participant must contain the following:
• The full address details of the Originator for Single Credit Transfer (SCT) and SCT Inst transactions;
• The full address details of the Debtor for SEPA Direct Debit (SDD) Core and SDD business-to-business (B2B) collections.
The EPC has been informed that some European Economic Area (EEA)-based SEPA payment scheme participants do not comply with the extra information requirements specified by the EU Funds Transfer Regulation (Regulation 2015/847/EU), chiefly when it comes to the need to provide the full address of the Originator/Debtor.
The EPC calls upon all SEPA payment scheme participants directly concerned to perform the following tasks:
• to finalise the identification of their customers with incoming and outgoing cross-border SEPA transactions involving both a UK and an EEA payment account; • to guarantee that all customers concerned provide the necessary extra SEPA transaction data.